Mouzenidis Travel has reached an agreement with creditors on claims for 17.2 million euros and has applied for ratification of the reorganization agreement, in accordance with the new bankruptcy law.
The company, which is part of the Mouzenidis group, according to Kathimerini, has signed bilateral agreements with eight of its creditors, which are to be included in the consolidation agreement and have claims for 17.2 million euros. They agreed that the company’s debts to them should be written off in the amount of 70%, and the remaining 30% – repaid in 120 equal monthly payments, the first one a month after the publication of the resolution.
Mouzenidis Travel is also negotiating with another 20 creditors who have claims for 7.4 million euros. These are mainly hotel and commercial companies, as well as Mouzenidis Travel Yekaterinburg, which received about 950 thousand euros.
The company has applied for an extension of the introduced “temporary asset protection” measures, which expired on December 23, and also made a request for debt settlement. However, pursuant to decision 15703/2021 held by Kathimerini, Mouzenidis Travel was unable to extend the measures. In other words, she still faces enforcement action against her, such as issuing payment orders, bringing individuals to justice, etc.
However, the company, which has liabilities in the order of EUR 100 million, is seeking to reach an agreement with the majority of its creditors, who are mainly suppliers, i.e. not banks or the state. A company that wants to stay viable aims to achieve a reduction in its liabilities of up to 70%.
The staff of Mouzenidis Travel is 188 people, and taking into account the seasonal staff, this figure increases to 360 people. According to the statement, “due to the global health crisis caused by the spread of the COVID-19 virus, the company is in an imminent inability to meet its overdue obligations, due to a significant reduction in its turnover.”
The company estimates a 94% drop in turnover from 2013 to 2020 as death of its founder Boris Mouzenidisaccording to participants in the tourism services market, has increased the pressure of creditors.