Eurocypria sold off to Cypriot government

The agreement for the sell off of Cyprus Airways’ subsidiary company Eurocypria to the government was signed here Monday for CYP 13,425.000 or EUR 23.25 mln. The agreement was signed on behalf of the government by Finance Minister Michalis Sarris, Lazaros Savvides representing Cyprus Airways and Panagiotis Neofitou, Vice chairman of Eurocypria Airlines Ltd.
In statements after the ceremony, Communications and Works Minister Haris Thrasou, who was also present, said that from now on, Eurocypria becomes an entirely independent company. For the time being, he said, the only shareholder is the government.
He said that after a cabinet decision, the company was bought entirely by the state.
Thrasou reminded that the company was sold to the state after two plans were submitted, one to salvage Cyprus Airways and the other for the company’s restructuring.
”The restructuring plan has been submitted to the European Commission and we are waiting for their final comments”, Thrasou said, noting that from contacts in Brussels, both he and the Finance Minister have ascertained willingness for the company to proceed and sell off its assets and limit its fleet.
Restructuring the Cyprus Airways group is a requirement for the company to be eligible for government-backed medium-term loan of CYP 55 mln, strengthening the company’s liquidity.
Asked if the government was contemplating a strategic investor in the Cyprus Airways group, Sarris said: ”We are now focused on a plan boosting profitability … We have not ruled anything out, and if there is interest from a strategic investor it is something we would look at.”