The main power utility PPC plans to take legal action against troubled steel producer Halyvourgiki over unpaid electricity bills totaling more than 30 million euros, the power utility’s chief executive Manolis Panagiotakis informed a general shareholders’ meeting held today.
Panagiotakis stressed PPC is not pulling the plug on the steel producer as it may continue being supplied energy from the grid. He also described a Halyvourgiki offer concerning a partial payment worth half a million euros as unsatisfactory. Halyvourgiki, Greece’s oldest steel producer, is believed to owe PPC a total of 31.4 million euros.
The government had imposed a December 4 deadline on Halyvourgiki but it appears to have failed to produce results.
Besides the plan for legal action, PPC may decide to interrupt its supply to Halyvourgiki either today or tomorrow. Power grid operator IPTO has been informed of the intention.
On another front, PPC is currently pursuing a debt agreement with another troubled industrial firm, the nickel producer Larco, owing the power utility an amount in excess of 280 million euros.
The two sides have formed a joint committee to facilitate negotiations. PPC is demanding full payments for all new Larco electricity consumption, implementation of a payback program for older amounts and provisions offering solid guarantees. PPC threatens to stop representing Larco as the firm’s electricity supplier if these terms are not met.