Streamlining of Elefsis Shipyards

The draft law for the streamlining of Elefsis Shipyards, drawn up in cooperation between the ministries of Finance and National Defense, authorizes the Development and Investments minister to represent the company’s main creditor, i.e. the Greek state, at the negotiation regarding the streamlining plan that will be submitted to the competent court based on the legal framework on bankruptcy.

The plan is being drafted in cooperation with Greek-American company Onex and with funding from DFC, from the US: It provided for the immediate investment of $100 million for the restarting of the shipyards in western Attica and their full operation in job terms.

From the outset Onex will pay employees the entire compensation the law provides for, while the rest of the money they are due from the past will be paid to them through any defense contracts the shipyards secure – not necessarily from the Hellenic Navy. That means there is no commitments by the Greek navy to concede any projects to the Elefsis Shipyards.

The implementation of the plan will also require the approval of the Directorate General for Competition of the European Commission, and of the competent court.