Issues crucial for PPC cash flow likely to be settled this week

A number of crucial issues linked to main power utility PPC’s cash concerns are expected to be settled this week. Firstly, the utility’s long-running effort to secure a 200 million-euro loan from the country’s four main banks, needed by PPC to cover a bond payment maturing in a few days, should be finalized over the next few days. Also, consulting firm Deloitte Business Solutions is expected to deliver its evaluation on the current market value of a 25 percent stake of PPC subsidiary IPTO, the power grid operator, whose split and sale process is now in progress.

PPC’s board is scheduled to meet Thursday to endorse various procedural matters concerning the IPTO split and also sign the loan agreement for the 200 million-euro amount to be provided by Greece’s four main banks. An interest rate agreement of 5.8 percent has already been reached. The maturing 200 million-bond is likely to be paid the very next day. Otherwise, it is expected to be covered early next week.

As for the Deloitte Business Solutions evaluation of IPTO’s 25 percent, it should work out to a little over 240 million euros. Last year, the consulting firm had put a 964.2 million-euro price tag on the entire IPTO. The aforemenioned 240 million euros represents 25 percent of this figure.

PPC, whose cash flow has been hit hard by an alarming unpaid receivables figure, can soon expect to rake in over 560 million euros – 240 million euros, at least, from the Greek State for its acquisition of IPTO’s 25 percent, as well as a 320 million-euro sum from China’s SGCC (State Grid Corporation of China), which has agreed to acquire a 24 percent stake of IPTO.