Antonis Gkiokas, Senior Supervisor at M. Psylla – V. Vizas – G. Katrinakis Legislation Company (PwC Greece’s criminal observe), provides us a take a look at the Greek distressed property marketplace and the company’s personal choices for organisational insolvency and restructuring in his jurisdiction.
How would you describe the Greek distressed property marketplace? What are the important thing drivers and developments?
The onset of the pandemic shifted the company center of attention from funding to disaster control. Particularly for corporations already in monetary misery, this has supposed a shift from advanced restructuring answers to ‘survival’ mode, additional supported through executive subsidized financing incentives and subsidies. Then again, whilst the have an effect on of the COVID-19 pandemic is receding, the approaching months provide a recent set of demanding situations.
However, distressed transactions in Greece are recently on the upward thrust, with a number of notable bulletins over the last yr – a development which we consider will proceed, particularly given the demanding situations looming forward.
Transactional job is recently formed through (a) the Greek monetary establishments, which is able to proceed the offloading in their NPLs, (b) the mortgage gross sales within the secondary marketplace, which has begun, and (c) sale of companies or property of distressed corporations. Additional funding alternatives also are anticipated in the course of the restoration fund program (RRF).
The Greek executive has additionally contributed to the build-up of the momentum through enticing in different advanced trade rescue transactions for distressed corporations or the disposal in their viable trade segments, particularly in sectors of top public hobby importance similar to defence, shipbuilding, business minerals, and effort.
The onset of the pandemic shifted the company center of attention from funding to disaster control.
Some other contemporary development is the purchase of industrial property through buyers thru pressured public sale processes. Notable contemporary circumstances come with luxurious accommodations, business websites, and place of job constructions and complexes. This follows the new enhancements to the enforcement and digital auctions framework in conjunction with extra competitive advertising methods hired through banks and NPL Servicing Corporations.
May just you please supply an summary of new legislative trends which for your estimation may just form the Greek distressed property marketplace?
The Greek executive, in enforcing its strategic motion plan to deal with the Greek non-public debt factor whilst additionally incentivising distressed M&A job, made over its collective enforcement framework with the enactment of the brand new insolvency framework, which is predicted to form the transactional job developments.
The brand new law harmonised the Greek framework with Directive (EU) 2019/1023 (Restructuring Directive) but in addition presented vital adjustments and procedural enhancements aiming against a holistic, uniform, complete and environment friendly algorithm, additional reinforced through procedural and tax incentives to give a boost to its beauty. It introduces a toolkit of processes divided into two huge classes, the primary aiming to stop insolvency and the second one to regulate chapter, with the concept that of industrial rescue having a central function.
The preemptive/rehabilitation procedure equipment envisage sustainable trade turnarounds and rescues by means of debt and company restructurings, trade transformations or trade and asset transfers, even with out debtor consent in positive restricted cases.
The brand new chapter liquidation procedure comprises each examined and new options, aiming to facilitate the fast unencumber of tied-up distressed property again to productive use, streamlined thru an effective, structured, and clear public public sale procedure by means of the e-auction platform. Particularly for the disposal of complete companies, trade segments or teams of property, the related public sale procedure does now not require a minimal value.
Whilst a trade is present process restructuring, why is it very important to have interaction with key stakeholders?
A success restructurings are advanced workouts, particularly after they entail debt rescheduling preparations blended with company or operational reorganisations. The most important element is that distressed corporations are generally confronted with critical difficulties find financing from Greek monetary establishments, even for running capital functions, then again, the latter are extra prepared to offer investment to buyers in quest of to have interaction in restructuring schemes and distressed transactions.
A success restructurings are advanced workouts, particularly after they entail debt rescheduling preparations blended with company or operational reorganisations.
Subsequently, an very important element for attaining a a hit restructuring is the well timed and lively engagement of key stakeholders similar to the corporate control, shareholders, attainable buyers, institutional lenders, bondholders, and different collectors with subject material exposures. Restructurings want additionally to factor-in the socio-economic have an effect on, with particular hobby to the rights of staff, native economies and provide ecosystems, particularly after they come with financially inclined social teams.
Are you able to proportion examples of products and services that PwC Greece’s criminal observe provides on this space?
We consider that a hit trade recoveries generate sustainable companies, give a contribution to financial steadiness and bolster trade sustainability indexes, whilst freeing human sources and capital tied up in distressed scenarios.
Our devoted Insolvency and Industry Restoration observe has been regularly creating, rising, and increasing to transactional paintings with really extensive publicity within the company and fiscal sector business, running in numerous roles and mandates with a vital monitor report in seminal transactions within the distressed property and NPL sectors. Our transaction credentials come with landmark acquisitions of distressed companies by means of formal pre-insolvency restructuring equipment, navigating world buyers to put into effect their strategic enlargement plans, maximising their advantages and incentives from the related framework.
The Insolvency and Industry Restoration observe is a part of the core PwC Felony Transactional Apply recently consisting of 15 criminal pros. We duvet the wider universe of company and fiscal legislation recommendation, with a focal point round 3 key pillars: (i) insolvency and restructurings (involving contentious and non-contentious paintings); (ii) acquisition transactions of indexed and non-listed corporations in Greece and in another country and iii) transactional banking and finance tasks.
Our transactional groups are additional complemented through our Labour Legislation, Actual Property Transactions and Regulatory practices, which offer strengthen in transactional and regulatory and compliance problems (together with capital markets, regulatory compliance, takeover bids, AML and GDPR). The transactional observe combines its providing with structuring products and services along with the PwC tax observe, in addition to our PwC Global community of criminal companions leveraging our presence in additional than 95 jurisdictions, and in addition complemented through the choices of our PwC Offers-Industry Restoration Services and products observe.
Antonis Gkiokas, Senior Supervisor, Insolvency Apply Chief
M. Psylla – V. Vizas – G. Katrinakis Legislation Company (PwC criminal community)
268 Kifissias Road | 15232 | Athens | Greece
Telephone: +30 210 687 4012 | Cell: +30 694 164 2853
Antonis Gkiokas is the chief of PwC’s Insolvency observe in Greece. He’s a seasoned criminal practitioner with a monitor report on distressed M&A transactions, insolvency legislation, company legislation and restructurings. Moreover, he advises financing establishments in formulating their portfolio restoration methods. His publicity additional extends to NPL and extraordinary M&A transactions.
Antonis’s clientele and mandates are numerous, together with distressed property buyers, financing establishments and NPL servicers. He additionally serves shoppers from industries similar to production, defence, power and development, retail, meals and drinks. He used to be one of the vital make a choice few insolvency professionals mandated through the Greek executive to be a part of the advert hoc drafting committee which ready the brand new insolvency framework for Greece.