Larco

The planned sale of indebted and idle state mining firm Larco has been called off, the Ministry of Finance announced Monday.

Market analysts had long expected the move. It was made inevitable Friday, when GEK Terna and AD Holdings, the consortium chosen to buy Larco's assets and the accompanying mining rights, informed the ministries concerned of its decision to pull out of the deal.

Greece's state mining company Larco has appeared in this newspaper more times than its size would justify.

But Kathimerini's disproportionate insistence on revisiting the bankrupt state company reflects the disproportionate burden taxpayers have shouldered to keep Larco "alive" - a zombie company, that is.

The Larco company now truly is a symbol - sadly, one of inaction.

Another costly chapter in the lengthy and tumultuous history of state mining company Larco has been added by the liquidation project to find an investor.

For one more year, the fourth in a row, the Larco state mining company will remain idle, but subsidized by the state budget. This is despite the fact that the relevant tender for its sale and the entry of a strategic investor has already been completed since last year and the demand for nickel internationally is strong.

The European Commission is pressuring the government to sort out state nickel producer Larco, either through its privatization or its closure: Brussels has again referred Greece to the European Court of Justice, demanding a huge fine for the non-implementation of the same court's decision on illegal state subsidies to the mining company since 2017.

Greek lawmakers approved a restructuring plan for Larco late on Wednesday which Greece called a last attempt to save Europe's biggest nickel producer.
The European Commission said in November it was taking Greece to the European Court of Justice (ECJ) over its failure to recover 135.8 million euros of illegal state aid to Larco, which is struggling under heavy debt.

The government is seeking to dig Greece out of a debt hole to the tune of three billion euros created by five of Greece's state-run corporations (DEKO).

Greek lawmakers approved a restructuring plan for Larco late on Wednesday which Greece called a last attempt to save Europe's biggest nickel producer.

The European Commission said in November it was taking Greece to the European Court of Justice (ECJ) over its failure to recover 135.8 million euros ($147.63 million) of illegal state aid to Larco which is struggling under heavy debt.

The future of troubled nickel company Larco depends on the success of the complex undertaking of its privatization, which will start immediately.

The Greek government on Monday presented a plan for the restructuring of LARCO, one of Europe's biggest nickel producers, by placing the mineral and metallurgical industry into a clearance management status which envisages cost and wage reductions, and an immediate launch of a tender for the selling of the factory and mines within 12 months.