Milos Mantonanaki: A new turn in the dispute with ETAD-banks – 2024-03-06 12:45:33

New episodes are constantly being added to Pantelis Mantonanakis’ multi-year dispute with creditor banks. The latter concerns the auction of the two emblematic hotels of the Cretan businessman, Elounda Beach Hotel & Villas and Elounda Bay Palace, a case that has been in the news for the last 24 hours.

Circles close to the businessman claim that the Mantonanaki group won an eight-month deadline, after the decision 454/2024 of the Court of First Instance of Athens canceling the auction, which was to be held on March 6.

That’s how much time, they say, needs to pass before the accelerating bank (in this case Eurobank) can start a new process. The same circles, however, argue that the above competition would be declared barren anyway as no interest was expressed.

And this because until Friday, March 1st, no letter of guarantee had been submitted by an interested party. The letter of guarantee should have been in the amount of 90 million euros, i.e. 30% of the 1st Offer Price that was set after a court decision that again resulted from an appeal by the Group to 300 million euros. The original price was lower at 181,630,000 euros.

It should be noted that the decision was made public yesterday, which was also posted on the e-auction page, with the auction marked “on hold”.

The judicial fronts

The above legal front comes to be added to the many legal fronts that the Mantonanaki group has… either with the public or with creditor banks.

In fact, in the next few days he intends to open another one, since he intends to challenge a decision of the Court of Appeal which deemed valid the cancellation of a 300 million euro bond loan by the banks. This appeal will be discussed on March 11 at the Supreme Court.

The dispute with ETAD over the real estate – tenderloin in Lagonisi

The Mantonanaki group is in a multi-year dispute both with the Greek government and with the banks and bondholders represented by Eurobank. The dispute with ETAD, which has been going on for several years, concerns the Grand Resost Lagonissi hotel.

The dispute over the real estate – tenderloin in Lagonissi between Attikos Ilios (businessman Mantonanakis’ company) and the Greek State dates back to 1999, when the Cretan businessman entered into a lease agreement with EOT for an area of ​​326 acres in Lagonissi, for a period of 77 years, with the obligation to implement investments of 263.9 million euros, all of which would remain for the benefit of EOT and the Greek State after the end of the concession.

The lease was amended in 2003 between ETAD and Attikos Helios and the company’s plans to create new uses and activities, which included the development of a significant number of luxury residences, a conference center and new hotel units, were not completed. The issue had even reached the Commission, while in the past the compromise also fell on the table.

The Mantonanaki group maintains that it has been vindicated by final decisions of the competent Courts and in fact has been awarded in its favor and against the subsidiary company of the Superfund, ETAD SA, an amount of more than 750 million euros. In fact, ETAD seems to recognize “its defeat” as in its published financial statements for the year 2022, it has made a provision of 329 million euros, thus officially recognizing part of its debt.

The bondholders and the plunder of Elounda

The Mantonanakis group has assigned the receivables from ETAD since the year 2014 to its Bond Lenders. He even claims that they exceed the demand of the bondholders.

It also claims that the acceleration of the auctions that were ultimately canceled are aimed not at the repayment of any loan claim, but at the “foreclosure of our Group’s hotels and their concession to competing interests”.

From Grand Resort Lagonissi…

The Mantonanakis family through the company “Anonymous Tourist Company Helios S.A.” owns and operates two super-luxury adjacent five (5) star hotel units: The Elounda Beach Hotel which first operated in 1971, with a capacity of 249 rooms and the Elounda Bay Palace, with a capacity of 266 rooms and since 2001 a member of “The Leading Hotels of the World’.

At the same time, through the company “Attikos Helios”, the Grand Resort Lagonissi hotel complex is exploited for tourism, reports the publication of ot.gr.

… in Elounda Bay and Papandreou

The unique layout, the decoration of the spaces, the exclusive facilities and the unique location of “Elounda Beach” became a pole of attraction for prominent persons from all over the world. Among the rich and famous guests of the luxurious hotel were many princes, famous artists, well-known businessmen, heads of state and Greek politicians, as well as the founder of PASOK.

Andreas Papandreou used to vacation at Elounda Beach in the late 1980s and early 1990s. It is said that he made critical decisions there. Giorgos Lianis in his book “The Last Leader”, as well as the last wife of Andreas Papandreou in her own book, describe political processes between longboats and fish eating.