ONEX close to buying Neorion Shipyards

The sources, which are close to the negotiation, said the restructuring plan envisaged a haircut in interest rates, surcharges and fines, payment of 25 pct of debt immediately and settlement of the remaining sum in more than 200 tranches. The Neorion Shipyard's debt is 40 mllion euros. A precondition for approving the deal is for 60 pct of creditors, among them suppliers and workers, to accept the settlement deal. ONEX Shipyards is also negotiating with Neorion Shipyards' main creditors, the Greek state and pension funds, to settle an existing debt in more than 120 tranches.
 Panos Xenokostas, head of ONEX Shipyards, in comments made to the Athens-Macedonian News Agency on the occasion of the inauguration of the Posidonia 2018 shipping fair in Athens, said his aim was to "build a modern shipyard" and announced that immediately after completion of the transaction, ONEX will proceed with the order of a new aframax tank.
Xenokostas said investments made in Neorion Shipyards so far exceed 2.2 million euros and that works also include the repair of the "Violanto Goulandri" tank (75,000 tons) in the first week of June. The cost of these projects will exceed 2.0 million euros. This tank can service vessels with a length of up to 245 metres and up to 32.4 metres in width.
Neorion Shipyards employed more than 300 workers in the last two months. ONEX Shipyards has taken over the operation of the shipyard - provisionally - since March.