CYPRUS: Orphanides Plc countdown begins

* Receivers aim for “best possible deal”; Banks, staff, suppliers a priority

The receivers appointed by Laiki Bank to try and sell as much of Orphanides Public Co. as possible have until April to find suitable buyers for the business as well as the assets of the company and pay off debts of about 225 mln euros.
Already, notices placed in the local media by Michalis Avraam of Michalis Avraam & Partners and Andrew Andronikou of UHY Hacker Young have invited potential investors to submit bids for nine of the former retail giants most sought-after properties, with the aim of selling them off as a going concern.
“These are the stores that are still operating, albeit with reduced stock. But they will also be easiest to find buyers for because of their significant locations,” said an expert who has consulted companies in restructuring their businesses.
“However, the biggest concern for the receivers must be their duty to the banks, the suppliers and most of all to the staff, as this is also a social problem, with priority to be given to those who can be made redundant so that they can move on with their lives,” he added.
One analyst who has good knowledge of the company, as well as the retail sector in general, explained that the receivers will not be limited to just the nine stores that have been announced.
“I’m sure offers will be expected for all properties, as well as the distribution centre. It’s just that the nine are considered as a going concern, while the rest will have to be sold as real estate assets, probably at a minimum going concern value and maybe even at a price substantially lower than any current market valuation.”
All stores are owned by Orphanides Public Co. or by subsidiaries and are all subject to the receivership and liquidation process that needs to clarify if all properties are free or committed by mortgage.
The receivers were appointed some time after Chris Orphanides had already struck a deal with ELOMAS of Larnaca, for the sale of the flagship Nicosia store in the Strovolos industrial area. However, they are expected to try and improve the terms of the deal that had been signed on January 14.
Sources close to the receivership process confirmed that there is some interest from overseas buyers, which will help keep a fair value on the whole group and its properties, maybe even obliging local investors to improve their bids.