A fishing vessel belonging to Argno that is returning to port. (Photo Credit: Argenova)

Argenova admits 'some issues' due to Pescanova’s lack of liquidity

ARGENTINA
Friday, April 12, 2013, 03:50 (GMT + 9)

Pescanova admits that in some of its subsidiaries there may be "specific problems" because of the "liquidity issues" that have led to the Galician multinational firm to present a voluntary creditors’ meeting, among other measures.

In Argentina, its subsidiary Argenova seems not to escape from this situation.

Argenova has offices in Buenos Aires and operates in the Patagonian ports of Comodoro Rivadavia and Puerto Deseado, where it is engaged in fishing activities, from the capture to the industrialization and export of crustaceans, cephalopods and fish found in the Argentinean offshore platform.

According to the Galician newspaper Faro de Vigo, some vessels forming part of Argenova fleet – composed of shellfish boats, jiggers and longliners -- are beginning to be moored due to the lack of money to buy the fuel they need.

So far, three boats may have been moored in various ports of the country.

While those in charge of the subsidiary Argenova acknowledged having "some problems," they clarified the agency Europa Press that the fact that part of its fleet has been moored "has to do with a biological question -- in the case of shrimp -- and it is not a strictly economic reason."

In late March, the Ministry of Agriculture, Forestry and Fisheries of the province of Chubut awarded a grant of nearly EUR 15,000 (ARS 100,000) to 40 workers of Argenova plant in Comodoro Rivadavia.

The Undersecretary of Fisheries, Luis Pérez, explained that the grant was awarded through an Executive Order so as to assist the 40 workers at the plant, to whom the company owes money.

The aid "arose as a consequence of the complicated economic situation of the firm, resulting in part from the international context that makes it difficult for firms to export their products," the ministry explained in a statement.

Meanwhile, other subsidiaries of Pescanova in the world are also dealing with liquidity problems, including Pescafina and the foreign firms Promarisco (Ecuador), NovaNam (South Africa) and Acuinova Chile (Chile).

Pescafina has just requested the creditors’ meeting in an attempt to ensure the business continuity until its financial situation is clarified. The company presented the application for the meeting on the same day when Pescanova announced the voluntary creditors’ meeting.

It is estimated that Pescanova Group faces a debt of about EUR 2,700 million, that is to say, more than EUR 1,200 million, above what appears as part of the audited liabilities (EUR 1.522 million at the end of the third quarter of 2012), the agency Europa Press reported.

Related articles:

- Pescanova may be left without liquidity in a week
- Deadline extended for Pescanova to submit its numbers

By Analia Murias
[email protected]
www.seafood.media

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