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E-Shop.gr Seeks To Enter Conciliation Procedure

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Greek online store e-Shop filed an application to enter the procedure of conciliation (article 99) in order to address liquidity problems. The case will be heard on October 5. 

Managing director Apostolos Apostolakis told Capital.gr that the company has placed an application for article 99 to be able to complete smoothly the restructuring plan without playing interest on past obligations. “We want to take advantage of the favourable provisions of Article 99 and emerge stronger in the next year”, he said. 

The restructuring plan, which will be presented in the court, will be based on non-payment of interest. The administration said that it is in talks with banks and suppliers, which fully support this effort. 

The company’s obligations amounted to €43m, of which €25m refer to liabilities to banks and €18m to suppliers. Orders to suppliers are now paid in cash. 

Liquidity problems are attributed to both the difficult market situation and the decision of several insurance companies to stop the activity of credit insurance. As a result, a series of payments were uninsured, with several suppliers seeking repayments.

Apostolos Apostolakis is optimistic for the next day, stating that the company’s activities continue normally. However, sources note that the sales in the first five months of 2011 have declined by 25%.

The company recorded turnover of €105m and losses of €2m in 2010, compared with turnover of €128.36m and losses of €1.3m in 2009.
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