SEKAP bankruptcy set to be decided on Friday

The likely bankruptcy of tobacco company SEKAP is to be decided at the administrative court of Komotini, northeastern Greece, at noon on Friday, following the company’s decision on Thursday to stop paying its dues if the verdict does not go its way.

SEKAP lawyer Alexandros Lykourezos told Kathimerini on Thursday: “The Xanthi Customs Office blocked the distribution of SEKAP products in the local market on December 21, following the confirmation of the 38.2-million-euro fine by the Komotini Court of Appeals. We have immediately demanded a suspension by the administrative court of Komotini and [today] we will known the verdict.

“If there is an injunction decision, as we hope, then the company will be able to operate, otherwise the problems will be huge and we will be talking about the enterprise’s forced bankruptcy.”

Should Friday’s verdict be in its favor, SEKAP will then apply for the annulment of the Komotini appeals court decision, which would take a couple of years to be decided, but at least it would allow SEKAP to sell its products both locally and abroad, according to Lykourezos.

The fine concerns customs violations recorded in 2008.