Creta Farms' shareholders sign MoU with creditor banks

Constantinos Domazakis, a major shareholder in Creta Farms, on Monday signed a memorandum of understanding between the company and the four Greek systemic banks in order to proceed with a process of finding a strategic investor and safeguarding the smooth operation of the company.

Greek Development and Investments Minister Adonis Georgiadis had contacted Manos Domazakis, the other major shareholder, and secured his commitment that he would sign an MoU with the four banks. Georgiadis met on Monday morning with Constantinos Domazakis and representatives of the four banks. The banks have already signed the MoU, which ensures the continuation and rescue of Creta Farms.

In announcement, Constantinos Domazakis said the MoU signals the start of a process to find a strategic investor, places a CRO/Monitoring Trustee in the company and the banks pledge to activate any credit limits and factoring deals.

"Today a first step has been made to lead Creta Farms to growth once more and place the company in the position it deserves. I will use all my forces, as I have done so far, to find the best solution for shareholders and workers. It is a last chance for Creta Farms and I will do whatever is in my power so that it is not wasted," Domazakis said.

Development and Investments Minister Adonis Georgiadis said the two shareholders, Costantinos and Manos Domazakis, signed the MoU with the four creditor banks and so everyone is commited to a specific timetable and a specific process to find a strategic investor that will lead the great company to an even brighter future. The deal safeguards jobs and there is an expectation that the company's growth will create several more jobs, he added. Georgiadis said there are several candidates for the company and noted that "since Saturday, two-three new candidate investors appeared".

"Everyone must know that we will leave no one to his fate," the minister said, adding that the "Creta Farms" model will be used in other cases as well. He noted that a working group in the ministry has drafted a list of 170 large enterprises facing problems and stressed that "we will try to solve as many of these problems as we can".