Greek DEPA in talks with Big Four for ELFE forced administration

Greek Gas utility DEPA is currently engaged in talks with the professional services domain’s four biggest players, PwC, KPMG, Ernst & Young, and Deloitte, as part of its preparations for new legal action against troubled ELFE (Hellenic Fertilizers and Chemicals), through which a forced administration request will be made.

DEPA is believed to be examining offers received from each one of the Big Four firms, as they are known, to act as administrators of ELFE, now owing close to 130 million euros to the gas utility.

Just days ago, an Athens Court of First Instance lifted temporary protection measures offered to ELFE, which had enabled the beleaguered producer to issue six-month post-dated cheques to cover DEPA gas supply since 2016, despite DEPA demands for cash payments, based on a decision by company shareholders.

The court verdict paves the way for DEPA to request that ELFE be placed under forced administration. This will enable an administrator to act in the best interest of creditors.

ELFE’s debt owed to DEPA has continued to rise as it is subject to a 7.25 percent interest creating additional amounts of approximately 200,000 euros per month.