The three Greek banks, EFG-Eurobank, Alpha Bank and NBG, have agreed and approved to support the Company with a new secured working capital facility, subject to the terms stated below:
a) All lenders to grant appropriate waivers
b) No interest or capital repayments during the waiver period
c) Group Management to commit to submit a balance sheet restructuring proposal to be discussed and approved by the lenders by the end of 2009. Essential details of the agreement are being finalized and will be disclosed at the appropriate time.
John Kourouglos, CEO of the Group, commented:
We are very pleased and appreciative of the Greek banks effort to support the Group. This decision demonstrates that the lenders are confident about the business and management.
This decision also, initiates the process of normalizing the Group's balance sheet so that management can focus on running the business under the new business model and vision of "sustainable, profitable growth".
The 2008-2009 18month re-engineering program is now complete, as promised and on time. The Company now has a much more competitive cost structure which, with an uptick in the economy, will provide significant incremental profitability.
Victor Papaconstantinou, CFO of the Group, commented:
The new working capital facility will enable the Company to support increasing demand, help secure better payment terms from suppliers and will assure customers of consistent and cutting edge products and services.
We have also engaged the services of Ernst & Young Advisory Group to support and assist in updating the Group's business plan, on which the forthcoming balance sheet restructuring will be based.
For further information please address to Group Investor Relations department, tel. +30 210 6285000 and e-mail: investor.relations@maillis.gr