Big changes for over-in­debted com­pa­nies

Kathimerini English - - Focus - ANESTIS DOKAS

Ma­jor changes are com­ing for overindebted en­ter­prises, as lenders will be go­ing ahead with the im­me­di­ate re­place­ment of their man­age­ment or even the sale of com­pa­nies that do not pay off their dues.

Kathimerini un­der­stands that by Septem­ber two medium-cap­i­tal­iza­tion com­pa­nies will have their man­age­ment teams re­placed and there is strong pres­sure on an­other one that has large debts to ur­gently sell off some of its as­sets or suf­fer the same fate as the other two com­pa­nies.

The Cap­i­tal Mar­kets Com­mis­sion has al­ready been in­formed as the com­pa­nies’ time is up, and banks have all the in­stru­ments they need to put pres­sure on their over-in­debted cor­po­rate clients. The in­sti­tu­tional frame­work for the ac­tive man­age­ment of non­per­form­ing loans is now in force, of­fer­ing im­mu­nity to bank of­fi­cials from li­a­bil­ity re­gard­ing the com­ple­tion of the bank­ruptcy process, and the mass clear­ance of the mar­ket from zom­bie com­pa­nies has be­gun.

Stock mar­ket pro­fes­sion­als note that by the end of this year we should ex­pect to see the “shut­down and liq­ui­da­tion of ma­jor over-in­debted com­pa­nies that have be­come ghosts of their pre­vi­ous selves, fol­low­ing eight years of re­ces­sion.”

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