Sklavenitis, a major Greek supermarket chain, has stepped in to throw a lifesaver to Marinopoulos after it filed for bankruptcy in June. Alpha Bank and Eurobank approved the rescue plan that hopes to keep 12,500 employees on the Marinopoulos network from the unemployment office.
Alpha Bank and Eurobank were the two Greek financial institutions that approved the rescue package, whereas the National Bank of Greece and Piraeus bank are expected to give the go-ahead on Thursday.
The plan foresees that banks will offer the new company (with a new tax number that will be owned by Sklavenitis) the sum of 360 million euros with low interest at 1.5 percent to be paid off over a period of 10 years. The largest part of the payment will be made at the end of the loan deadline.
Banks will reserve the right for share capitalization of the loan and the acquisition of 25 percent of the new company that will be owned 100 percent by Sklavenitis. Funding will be at 75 million euros for 2016 and another 55 million euros the year after. The total capital will be at 485 million euros to be used as starter capital and to pay off suppliers.
A debt haircut to the portion owed to suppliers may be at 50 percent.
The salvation of Marinopoulos will be in accordance with article 106 of the bankruptcy code.