Nireus Aquaculture SA — named after an ancient Greek sea god — is awash in an ocean of debt and has become a parable for the bad loans crippling Greece's corporate sector, the Wall Street Journal reported today. Most of the company's big investors have fled, profits and dividends have disappeared and Nireus shares have fallen more than 70 percent in the past five years. And ever since Nireus missed bond-interest payments two years ago, the company and its creditors have been in a stalemate caused in part by Greece's bankruptcy laws, which make it almost impossible for Greek banks either to rescue the company or shut it down without the consent of its major shareholders. Aristides Belles, who owns 22 percent of the company, has refused to concede control. He is resisting a debt-for-equity swap proposal from his banks, as well as plans for a three-way merger with rivals Selonda Aquaculture SA and Dias Aquaculture SA. Both are equally steeped in debt, but a combination could result in cost savings that could help a combined company re-emerge from the crisis in a relatively strong position.
