Published On: Wed, Apr 18th, 2018

Ballast Nedam back in the danger zone

Ballast NedamWILLEMSTAD - Construction Company Ballast Nedam, which was rescued at the end of 2015 by the Turkish entrepreneur and billionaire Erman Ilicak, is back in the danger zone.

With the current cash flow, the company can finance its activities until the fourth quarter of this year. To be able to continue after that, a new financing package has to be concluded before that time. Meanwhile, the company is under the strict supervision of the banks.

This is evident from Ballast Nedam's 2017 annual report, as filed with the Chamber of Commerce. The difficult financial situation does not, however, make the developers worry too much. A number of large orders were received last year.

In 2017 a so-called 'covenant holiday' was agreed with the banks. In that year, the company temporarily exceeded the credit ceilings of the banks. Before 2018, the company together with the banks 'created a new emergency relationship'. According to the annual report, this may lead to additional requests for support by the shareholder.

That shareholder in Ballast Nedam is Turkish Rönesans (Renaissance), which is almost entirely owned by Erman Ilicak. The board of directors of Ballast Nedam, which mainly consists of Turks, says to continuously check whether the Nieuwegeinse contractor with its 1750 employees still meets the banking requirements.

The entire process is important for Curaçao since Ballast Nedam is the construction company responsible for the new hospital.

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