PPC faces critical cash shortfall

The new chairman and CEO of Public Power Corporation has sounded a dramatic warning about the firm's cash shortfall, saying it is larger than expected and he has three weeks to decide on measures to reduce it.

These measures could include changes in pricing, Georgios Stassis told reporters following a shareholders' meeting that rubber-stamped his appointment by the new government.

Stassis said the shortfall could exceed 800 million euros.

The new CEO said he has given himself three weeks to come up with the measures, because that is when PPC will release its first-half results.

If the certified accountants signing off on the results are not satisfied that a plan is in place, then banks may decide to characterize PPC's loans as delinquent, which could have a devastating domino effect on both the company and its lenders, since PPC is highly indebted.

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