· Pillarstone makes first investment in
Greece, providing new capital and management expertise to Notos Com Holdings to
support its restructuring and turnaround
· First structure of its kind in
Greece, taking advantage of new regulatory framework to invest in the company
and kick-start its recovery process
· All four major Greek banks to appoint
Pillarstone as servicer of their NPL positions and provide new funding
London and Athens – Pillarstone, the pan-European platform for banks and companies, announces
that it has agreed a deal with Notos Com Holdings (“Notos” or the “Company”)
and its lenders, which will see Pillarstone invest fresh capital and management
expertise to help stabilise the Company and support its turnaround and growth.
The innovative
structure is the first of its kind in Greece, taking advantage of recent regulatory
changes that have created a more favourable climate for international investors.
The agreement will
see Notos’ NPL positions of Alpha Bank, Eurobank-Ergasias, National Bank of
Greece and Piraeus Bank, serviced by the Pillarstone platform. Under the deal, Pillarstone and the Greek
banks will invest new funds of up to €25m. The deal is supported by the majority
owner, Mr. Michalis Papaellinas, who will also be investing in the structure
and provide valuable commercial assistance to deliver a new long-term business
plan. The
transaction is expected to complete within the next couple of months and is
subject to customary conditions, regulatory and other approvals by the
respective authorities in Greece, including the Bank of Greece.
The Pillarstone
platform serves as...
a specialist solution to support banks in managing their
non-performing loan exposures. Pillarstone invests long term capital and
management expertise into over-leveraged businesses, helping them to recover
and turnaround into growing companies. Pillarstone’s Greek subsidiary obtained a
licence from the Bank of Greece in May 2017 to service credit receivables. The investment
by Pillarstone in Notos introduces this new and innovative structure to the
Greek market that will put over-indebted companies back on track to a growth
trajectory and is expected to the first of many such deals.
The transaction
builds on Pillarstone’s strong track record to date, with over €2bn of
non-performing bank debt under management across a number of businesses. It is a proven
solution to addressing bank NPLs. Pillarstone recently announced its first
exit, from Italian food packaging company Cuki, selling the business to Melitta
Group Management GmbH & Co.
Notos is one of the
largest commercial companies in the Greek market, exclusively representing
world class international brands, such as Chanel, Clarins, Guerlain, Gant,
Lacoste, Nautica, American Eagle and Faber Castell, and operating a number of
department stores under the Notos Galleries and Notos Home brands. The Group was established in 2001, as a
combination of a number of companies with over 50 years trading history.
Notos Managing
Director, Mr. Michalis Papaellinas, said: “I am very happy to announce that Pillarstone
has agreed to invest in Notos Com and provide the Company with new financing and
operational expertise to develop its business based on our agreed Business Plan.
The Greek banks’ commitment and confidence in Notos is a testament to the fact that
the Greek banking system is a force for good in the turnaround and resetting of
the country’s businesses. Notos Com opens a new chapter on its 50 years’
business story side by side with Pillarstone. I would like to thank the 1,500
employees of Notos for their dedication, loyalty and support during these
challenging years which can now be put in the past.”
Pillarstone CEO, John
Davison, said: “We are
delighted to be supporting Notos, a major and long-established company in the
Greek retail sector, and I look forward to working with Michalis to put the company back on a stable footing
and resume its growth path. The business will be provided with capital, operational expertise and support
for Notos’ experienced and loyal management team. This has been our main focus throughout
the period since I first met Michalis well over a
year ago, and in which time we have worked closely together with him and his
team to develop the new Business Plan for Notos.
Over
recent years the Greek government and its people have worked hard to put
through the necessary legal reforms to provide increased certainty and security
to international investors. Today’s deal
also highlights the strong desire across the major Greek banks to address the
NPLs on their balance sheets. This is a perfect example of how Pillarstone can
assist companies and banks to save jobs, create value and deliver wider
economic benefits that are much needed in the Greek market."
The four Banks said: “On behalf
of the Banks it is expected that the partnership with Pillarstone will help
preserve the company’s value and create the opportunity for future growth. With
the injection of fresh capital and management expertise, this deal will
contribute to the company’s rescue from liquidation, providing much needed reassurance
to employees and business partners.”
About
Pillarstone
Pillarstone is a platform established by KKR and John Davison
in 2015. John is Pillarstone’s CEO and co-investor. Pillarstone partners with
European Banks to create value by managing their non-core assets on their balance
sheets.
The platform provides long term finance and
operational expertise to help businesses grow and create value. Within the
Greek market, Pillarstone is in a strategic partnership with Greece's two major
banks (ALPHA BANK and EUROBANK), as well as EBRD (European Bank for
Reconstruction and Development).
Pillarstone
Greece is licensed and regulated by Bank of Greece as a credit servicing firm.
