Greek lawmakers clear rescue plan for nickel producer Larco

ATHENS – Greek lawmakers approved a restructuring plan for Larco late on Wednesday which Greece called a last attempt to save Europe’s biggest nickel producer.

The European Commission said in November it was taking Greece to the European Court of Justice (ECJ) over its failure to recover €135.8-million of illegal state aid to Larco which is struggling under heavy debt.

Larco, which is 55% owned by the state, is floundering under half a billion euros in debt owed to suppliers, contractors, banks and pension funds, including €350-million in arrears to power utility Public Power Corp..

The Greek parliament on Wednesday cleared an amendment which stipulates the appointment of an administrator in March to liquidate Larco, cut wage costs by an average 25% and push ahead with a fast-track tender to sell a smelting plant and some of its mines.