Alfa Wood Group is seeking to give the timber plant in Grevena a new lease of life, with debts cut and liabilities repaid over 13 years. The plan involves acquiring the production facilities and other assets of two heavily indebted companies, with Alfa Wood Group, as strategic investor, moving from tenant to owner of the plant it already operates.
The restructuring agreements for Alfa Wood SA and Alfa Wood Pindos were submitted for court approval on 30 October, having secured the consent of creditors representing 67.5% and 61.63% of the respective claims. They are scheduled to be heard on 1 December.
At the heart of the restructuring plan is Alfa Wood Pindos’ plant in Grevena, which produces MDF and laminate flooring. The company that owns it has been operationally inactive since 2022 and has no employees. The facilities are used by Alfa Wood Group, which leases them.
According to information, the restructuring plan provides for Alfa Wood Group, as strategic investor, to acquire the Pindos plant in Grevena, its buildings and machinery, as well as Alfa Wood SA’s trademarks, stakes, receivables and other assets. The estimated total value of Pindos’ real estate and equipment is €13.7 million, of which €4.6 million relates to the property and €9.1 million to the equipment.
The biggest burden is debt. At Alfa Wood SA, the current portion of long-term borrowing stood at €121 million in July 2026. Of this, €95 million was owed to Sunrise II, €18 million to Eagle Issuer and €8 million to Cairo III.
Pindos’ borrowing includes €12.3 million owed to Piraeus Bank, €6.6 million to National Bank of Greece, €5.4 million to Frontier III and €1.1 million to Sunrise I. The plan provides for Alfa Wood Group to assume part of the liabilities of the two companies, while some bank debt and claims held by the state and social security funds would be written off.
Haircut percentages vary by creditor, depending on the collateral and the estimated recovery in the event of liquidation.
A forced liquidation of Alfa Wood Pindos would leave about €23.1 million unrecovered. Creditors are estimated to recover 23.8% of their claims, compared with 34.38% under the restructuring. In net present value terms, projected proceeds rise from €9.1 million to €14 million.
For Alfa Wood SA, the estimated amount left unrecovered in a liquidation would reach €139.6 million. The projected recovery rises from 0.04% to 0.82% under the restructuring.
Both restructuring plans, according to the electronic insolvency register, have received the green light from a large proportion of creditors. For Pindos, creditors backing the plan represent 61.63% of total claims and 88.23% of secured claims. At Alfa Wood SA, the consent rate stands at 67.5% of affected claims.
As for the business plan for the next phase, it rests on Alfa Wood Group’s use of the Grevena plant and the other assets.
According to projections, in the first year of the agreement’s implementation, Alfa Wood Group’s revenue is expected to reach €102.6 million and net profit €4.3 million.
By the end of the 13-year period, revenue is forecast to reach €134.8 million and net profit €9.3 million. The EBITDA margin is forecast to range between 11.3% and 12.1%, while total free cash flow over the life of the plan is estimated at €47.8 million, providing the basis for repayment of the restructured liabilities.
For the record, Alfa Wood SA, founded in 1990, and Alfa Wood Pindos, established in 2004, have remained inactive since 2022. The former was also associated with Selman, which was declared bankrupt in 2014.