Power utility PPC, taking supply-cut action against major debtors, appears set to add Elefsis Shipyards, owing the utility over 5 million euros in overdue power bills, to its hit list.
Over the past few years, Elefsis Shipyards has registered for a number of installment-based payback programs offered by PPC but repeatedly failed to meet deadlines. Its debt owed to PPC has continuously increased.
PPC is believed to be moving to forward an electricity-cut order to distribution network operator DEDDIE/HEDNO, against Elefsis Shipyards, within the next few days.
An Elefsis Shipyards restructuring plan envisioned by strategic investor Onex has run into a dead end. The inability of current shareholder Nikos Tavoularis and the investor to agree on a number of issues is a key reason behind the impasse.
Just weeks ago, the government intervened to secure a three-month extension for a recently expired contract between the shipyard and the Hellenic Navy.
This government initiative promises temporary financial relief for Elefsis Shipyards following the main shareholder’s failure to offer consent for the shipyard’s restructuring plan before March 31, which led to the contract’s expiration.
The Hellenic Navy contract extension will enable the shipyard to cover 70 percent of salaries to its 600 or so employees on the payroll during the current quarter but solutions for various creditors, including PPC, have yet to be found.