Sunday, May 19 2024
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US Congress approves funding for Elefsis Shipyards

The US Congress has approved financing through borrowing for ONEX Shipyards to carry out the consolidation plan for Elefsis Shipyards. The US International Development Finance Corporation (DFC), America’s development bank, will provide the amount of $125 million. This financing will be the first so far from DFC for Greece.
The DFC Board of Directors completed all internal procedures for the approval of the financing in mid-May.
The business plan also includes development in regional energy security projects and green shipbuilding services.
ONEX has filed an application for the validation of the resolution agreement with the competent court, which has been discussed and a decision is expected.
The shipyards at Elefsina are attempting to be restructured with strategic investor ONEX through the bankruptcy law, as according to the data of the application for the validation of the reorganization agreement two years ago, they were burdened with liabilities of 423.3 million euros.
The part of the liabilities owed to tax and insurance funds exceeded €104 million and to the banks €117 million, while an additional €200 million is estimated to be owed to the Hellenic Navy.
According to an announcement by ONEX, which has already been in charge of the shipyards on the island of Syros for five years, it is implementing a program to upgrade the facilities and operational capabilities of Elefsis Shipyards.
The funding, which was approved by Congress, will be used to restore and upgrade the Elefsis Shipyards, increasing the service capacity to up to 200 ships per year.
When fully operational, ONEX Elefsis Shipyards, owned by businessman Panos Xenokostas, aspires to become the largest shipyard in the country that will serve the Greek Navy and commercial fleets.