Northern Greece cigarette manufacturer SEKAP, a previously state-run and debt-laden tobacco cooperative, is again reportedly on the path towards insolvency after an administrative appeals court in the town of Komotini recently confirmed a massive 38.2-million-euro fine imposed in 2008 for customs violations.
SEKAP’s fate emerged on the national spotlight this past year after at least one failed attempt by the Tsipras government to pass a legislative remedy for the fines, which the opposition criticized as unfair and favorable treatment towards Ivan Savvides, the Russian-Greek businessman who purchased the company in 2013 and runs it as a subsidiary of Russia-based Donskay Tabak.
A closely watched board of directors meeting is scheduled to be held on Thursday, although a press release by SEKAP clearly stated that board members “… will commence preparations for the company’s bankruptcy”.
