An agreement between the Sklavenitis super market group and lenders was signed on Saturday for a 360-million-euro financing package that will allow the former to purchase the shares and operation of rival Marinopoulos, which in May sought temporary protection from creditors.
All four of Greece’s systemic banks will participate in the financing.
A new business plan that foresees the merger of the two super market chains under Sklavenitis management is expected to be presented to major creditors before being submitted to an Athens bankruptcy court for approval.
Marinopoulos employs more than 11,000 people and owes hundreds of millions of euros to suppliers and other third parties. Its closure and permanent bankruptcy would have had extremely negative repercussions for Greece’s already recession-battered retail sector.
As “N” has previously reported, the lending agreement extends over 10 years and is linked with a 1.5-percent interest rate on the 360-million-euro loan. Additionally, lender banks will retain a right to whatever dividends arise from a prospective securitization of shares, with a 25-percent option in the new company that will be established by Sklavenitis and other partners to absorb 100 percent of Marinopoulos’ current shares.
The former will have 100 percent control of the new company and sink 125 million euros of its own capital in the deal.
