Elounda Beach Hotel
Elounda Beach Hotel

The hotels of the Mantonanakis Group in Elounda to be auctioned | Sharp response of the group and complaint against the banks

HOTELS TOURISM Uncategorized

After the accusations received by the Mantonanaki Group for the two hotels for which auctions have been scheduled on March 6, and after the dispute with the lenders and the State, the Mantonanaki Group has issued a statement with a catapulting statement on the development of the auction of its two iconic hotels in Elounda. In the announcement, which is fully documented and based on the decisions of the Greek judiciary, the group makes very serious allegations against both the lenders and those who engineered these developments.

In more detail, the auctions with EUROBANK, which has lost all the cases in court and with the Kypriotis Group, on March 6 concern the iconic Elounda Beach Hotel & Villas, with a capacity of 249 rooms, which will be auctioned with an offer price of 118 million euros and the five-star Elounda Bay Palace for 63.5 million euros, which has a capacity of 266 rooms. Based on the auction details, the Elounda Beach Hotel & Villas is a luxury, 5* category hotel, originally built between 1968 to 1971, which has undergone several renovations with several refurbishments having taken place since then.

Swimming pool in 1973 at Elounda Beach Hotel

The procedure with Eurobank acting as a representative of the bondholders of the common bond loan of EUR 300.000.000 from 22.03.2007 issued by Helios S.A, relates to the cheque dated 28 June 2023 ‘by which the defendant company was ordered to pay: a) the total amount of EUR 513.562.864,96, broken down into the outstanding bond principal of EUR 299.000.000 and the outstanding interest of EUR 214.562 million and that, at the legal rate with contractual interest for overdue payment from 9-6-2023 and with six months’ compound interest, until full repayment, plus (b) the amount of EUR 150 for the writing of the cheque and (c) the amount of EUR 120 for the costs of delivery of the cheque.

The dispute with the Public Properties Company

According to a report by Capital.gr, “the Mantonanaki Group is in a legal ” conflict ” with the Public Properties Company, for the case of Grand Resort Lagonissi. In the context of the dispute, 8 arbitration decisions have been finalized, awarding the company “Atticus Helios”, of interest to the Mantonanakis Group, damages from the State that exceed 620 million euros in total.

Historical photo from the Manolis Rasoulis file of 1973

The dispute dates back to 1999, when the company in the interests of the entrepreneur Mantonanakis ‘Atticus Ilios’ concluded a lease contract with the Ministry of Tourism for 326 acres of land in Lagonisi, for a period of 77 years, with the obligation to implement investments of EUR 263,9 million, all of which would remain for the benefit of the Ministry of Tourism and the Greek State after the expiry of the concession. The lease contract was amended in 2003 between the Public Properties Company and Attiko Ilios and the company’s plans to create new uses and activities, which included the development of a significant number of luxury residences, a conference centre and new hotel units, were not completed.

Negotiations between Attiko Helios and the Public Properties Company began in 2018, from which the two sides reached a settlement for the firm’s compensation from Public Properties Company in the amount of EUR 85 million. Given that the amount that the State would have to pay to the investor was very high and that there was no conviction against the State, the opinion of the Court of Auditors was sought in order to ensure that the settlement was legal and that the management of the Public Properties Company did not raise issues of dishonesty against the State.

The Court of Auditors issued an opinion against the settlement, as the prevailing legal view, supported by specialised consultants, was that a legal dispute would result in favour of the Public Properties Company. Thus, the Greek State rejected the EUR 85 million settlement accepted by Attiko Helios and the case went to court of law.

However, disputes quickly arose between Attiko Helios and the Public Properties Company regarding the execution of the lease contracts, which led the two sides to go to court, with the former claiming that it was never handed over the entire area as it was owed by the State, with the result that it could not proceed with its entire business plan.

It is noteworthy that in its 2022 financial statements, the state-owned real estate company made a provision of €257 million for obligations related to litigated cases. It is important to note that for 2022, the Public Properties Company reported a loss of approximately EUR 210.5 million, compared to a profit of approximately EUR 20 million in 2021″.

According to the Mantonanakis group, the Public Properties Company has already formed a provision of €329 million, thus recognising part of the debt to the group, while it stresses that the bond loan claimed by the banks has already been sold to a fund, with a discount of 72 per cent.

And of course it is a surprise that with €750 million in claims from the Public Properties Company, which have already been assigned to the group’s bondholders, the auction of two iconic hotels, among the most luxurious in Greek tourism, is being attempted.

In addition, the group denounces false and fraudulent valuations of the hotels, which, as it points out, have been drawn up within 48 hours by auction brokers.
It assures that the group’s hotels will operate normally in the forthcoming tourist season.

The announcement

The announcement of the Mantonanakis Group is as follows:

“On the occasion of reports concerning an auction that has been announced against two hotels of the company ELOUNDA SA, the management of the Mantonanakis Group, which manages among others the hotels ELOUNDA BEACH HOTEL, ELOUNDA BAY PALACE and GRAND RESORT LAGONISSI, declares the following:
1. As it is known, by final decisions of the competent Courts, an amount exceeding 750 million euros has been awarded in favour of our companies against the subsidiary company of the Superfund, Public Property Fund S.A.. These claims have been assigned to the Bondholders since the year 2014, and exceed the claim of the bondholders, even though this claim appears to have been deliberately inflated by the illegal inclusion of alleged default interest of more than EUR 100 million, due to the early termination of our bond loan, even though this termination has already been declared illegal and abusive.

2. The statutory auditors of the Public Properties Company S.A. and the Treasury, in their recently published financial statements for the financial year 2022, have made a provision of €329 million, thus formally recognising part of their debt. In fact, this recognition (which followed the irrevocable indictment of the former CEO of Public Properties Fund S.A. for felonious disloyalty to the Greek State of more than €170 million for his handling of the Attikos Helios A. E. in established cooperation – collusion with the representatives of our bondholders’ creditors, as has been accepted by more judicial judgments), concerns less than half of our awarded claims against the Public Properties Company S.A..

3. It is also known that our bond loan has been sold by the bondholders to funds at a discount of 72%, i.e. for less than half of the alleged claim for which the auction is being accelerated.

4. It is obvious from the above that the aim of the auction in question is not, allegedly, the repayment of a loan claim, but the expropriation of our Group’s hotels and their transfer to competing interests. This method is characterised by the fact that the auction in question is based on illegal, false, content-driven ‘valuation reports’, drawn up within 48 hours by auction brokers, which fraudulently underestimate the value of our hotels to a blatant degree. The legality of this auction, as well as the legality of the actions of the representative of the bondholders’ creditors and any other party involved in the case, as a whole, against us, will be decided by the competent courts, to which we have appealed and which have already vindicated us in the past, declaring the previous attempted auction by the bondholders’ lenders to be abusive and invalid, a fact well known to both the bondholders’ lenders and the authors of the publications in conflict.

5. The timing of the posting of the specific hypothetical publications is obviously not accidental, but is linked to the recent publication of the financial statements of the Public Properties Company and its shareholder Superfund and the sensation they caused in public opinion. It was deliberately chosen, with the insidious aim of damaging the operation of our hotel business, damaging the 1,500 families of employees who are supported by our Group in terms of income, damaging the reputation of a tourist group, which, since its foundation by the late Mr. For more than 50 years, since its foundation by the late Mr. K. Mantonanakis until today, it has been generously contributing to quality Greek tourism and executing the two largest tourism investments in the country for the benefit of tourism and the Greek State, in Lagonisi and Nafplio. In the face of this new illegal and fraudulent attack, we assure our employees and their families that the hotels of the company Helios S.A. will operate normally, as every year”.




Leave A Comment

Leave a Reply

Your email address will not be published. Required fields are marked *