Major changes are coming for over-indebted enterprises, as lenders will be going ahead with the immediate replacement of their management or even the sale of companies that do not pay off their dues.
Kathimerini understands that by September two medium-capitalization companies will have their management teams replaced and there is strong pressure on another one that has large debts to urgently sell off some of its assets or suffer the same fate as the other two companies.
The Capital Markets Commission has already been informed as the companies’ time is up, and banks have all the instruments they need to put pressure on their over-indebted corporate clients. The institutional framework for the active management of nonperforming loans is now in force, offering immunity to bank officials from liability regarding the completion of the bankruptcy process, and the mass clearance of the market from zombie companies has begun.
Stock market professionals note that by the end of this year we should expect to see the “shutdown and liquidation of major over-indebted companies that have become ghosts of their previous selves, following eight years of recession.”