Hearings concluded this week before a three-judge first instance court in Athens over a closely-watched motion by the Marinopoulos super market group for protection under Article 106 of Greece's bankruptcy code, a development that comes in light of an agreement by 78 percent of the retailer’s non-bank creditors to sign off on a merger between Marinopoulos and its rival Sklavenitis. The a plan considered as a last chance to keep the former’s stores open and its nearly 11,000-strong workforce employed.
Support by Marinopoulos’ employees for Sklavenitis' bid, as part of an intricate rescue scheme that also includes debt restructuring and new loans by all four of Greece’s systemic banks, is also view as imperative in proceeding with the deal.
The next milestone is Oct. 27, 2016 when the paperwork portion of the legal motion ends ahead of a ruling.
The merger plan entails a hefty 50-percent “haircut” on arrears owed to suppliers, contractors and other third parties, while a 250-installment package is foreseen for debts to the tax bureau, social security funds and utilities.
Marinopoulos has debts and obligations exceeding 1.2 billion euros.
