Sklavenitis to sign deal with Marinopoulos and lenders

Struggling supermarket chain Marinopoulos, rival and prospective buyer Sklavenitis, and the former’s creditor banks are expected to sign a memorandum of understanding (MoU) on Wednesday for the creation of the new company that will undertake the Marinopoulos group under the ownership of Sklavenitis.

The MoU will constitute a binding text that a court will have to approve on September 21 to avert the shutdown of the troubled retailer. The deal also requires the approval of the Competition Commission.

The agreement will give Sklavenitis 100 percent ownership of Marinopoulos through the new subsidiary, which will take out a loan of 360 million euros from banks at a favorable interest rate. Marinopoulos’s debts to suppliers that exceed 100,000 euros will be subject to a 50 percent haircut. Debts below that threshold will be paid in full.