ANEK Lines: Towards A Challenging September
According to a recent article in the Greek press (*), next September might be extra challenging for Crete-based ANEK Lines.
After restructuring its lending in 2017, ANEK Lines showed -at the end of 2018- negative private capital as well as overdue liabilities to banks. That means that it is required to proceed into a share capital increase in order to restore the equity between its private capital and its shareholders capital.
Last March, its Board of Directors decided to propose to the General Assembly to increase the company’s share capital up to €20 million by issuing new bonds. But it was finally decided that the General Assembly concerning that issue should be held on September 9, 2019.
However, ANEK Lines is running out of time. With the fuel costs increasing fast (+ 25% compared to 2017), the cash flow reducing in the second half of 2018 and the new stricter rules of the International Maritime Organization pushing, ANEK Lines’ current use is ready to encounter a very difficult period.
On the other hand, according to reports, ANEK LINE’s main creditors are possibly considering exercising their rights in relation to the loans they have issued. Piraeus Bank, which is the second largest shareholder of the Cretan ferry operator, holding 24,18% will play a key role to that development.
We will have to wait for the developments to come….
(*) Source: Capital.gr (6 August 2019)
