Dutch investment trust Impala Invest has reached agreement with creditors and will take over troubled Greek meat, cheese and deli product group Creta Farms, according to sources.
While company representatives have yet to release a statement on the plans, because Crete-based Creta Farms operates under temporary administration appointed from a court of first instance, the final approval of the deal is expected to be announced in the next few days.
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Creta Farms, Greece’s largest pork product manufacturer, was granted protection from creditors and vendors in October by the court in the Cretan city of Rethymno, with the judge ruling the company is covered by Article 106a of the bankruptcy code.
Creta Farms has an outstanding debt of EUR153m (US$170.1m), including a EUR15m loan from the European Investment Bank (EIB), as part of the support programme offered by the EU’s budget guarantee scheme through the European Fund for Strategic Investments (EFSI).
The company’s financial fortunes have been hit by what has been branded in the Greek media as a “family feud” between brothers Manolis and Konstantinos Domazakis brothers, the two main shareholders.
Eventually, a memorandum of understanding was signed by the major shareholders and Greece’s largest retail banks to seek an angel investor. During November, two companies, Impala Invest BV and Russia’s Lime Capital Partners, showed interest in the acquisition of Creta Farms and tabled binding offers for the once high-flyer company that also produces health-focused products based on extra virgin olives, using a patent drawing on expertise base on Crete’s traditional Mediterranean diet.
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By GlobalDataAn interim financing of EUR4 million was sourced earlier this month to safeguard company operations as its long-term future is debated – it employs 650 people. According to Greek-language media, major Greek banks have agreed with Impala they will accept an average debt haircut of 50% and a share capital increase of EUR20m. The fund specialises in food industry investments, especially in Greece, as well as in Bulgaria.
