The future appears bleak for what is left of the Halyvourgiki steel producer: Although production effectively ceased back in 2013, today, now that Public Power Corporation has switched off its electricity supply due to debts, the options of creditor banks are particularly limited.
Putting Halyvourgiki into receivership to auction it off is not recommended by legal sources, who note that receivership is used for operating units.
The other option, declaring the company bankrupt and seeking resolution, is feasible only for the banks, as the other creditors combined are not owed 20 percent or more of the total debt that would allow them to trigger that process, as provided for by the bankruptcy law.
Halyvourgiki does not have any notable dues to the state or the social security funds. Its employees continue to get paid as normal. The vast majority of its debts are to the banks, to which the company owes about 410 million euros. PPC is owed 31 million.
The banks could resort to one of the options offered by the bankruptcy law, but the family feud between main stakeholder Constantinos Angelopoulos and his sons, Panayiotis and Giorgos Angelopoulos – who are trying to get their father declared incapacitated – complicates matters further.