The Tavoularis Group, which controls Neorion SA, has started exclusive negotiations with Panos Xenokostas’ Onex Group over the sale of Elefsis Shipyards, which Neorion owns.
By virtue of the bankruptcy legislation, Onex, which last year acquired Neorion’s shipyard on Syros, is now planning to cover the obligations of Elefsis Shipyards to its employees, suppliers, creditors and the state through an integrated agreement that will be ratified by the competent court.
This practically constitutes a streamlining and acquisition model through a prearranged business and financing plan which is similar to that applied in the Neorion Syros buyout. However, this new project will be more difficult, as Elefsis Shipyards carries out shipbuilding and repairs for the Hellenic Navy – thanks to which the company is protected from its creditors until the end of this month – and requires serious investment for the repair and modernization of its infrastructure. This means that the agreement of the competent agencies of the Defense Ministry is also required.
The total obligations of Elefsis Shipyards come to 256.11 million euros, while its 2017 sales reached 28.8 million euros. Operating losses amounted to 27.3 million.