Salmon farm belonging to Acuinova. (Photo: Pescanova)

Pescanova’s appeal to stop Chilean subsidiary’s bankruptcy rejected

CHILE
Wednesday, March 26, 2014, 23:30 (GMT + 9)

A Chilean court decided to reject the administrative appeal for review filed by the Galician multinational firm Pescanova to stop the bankruptcy process of the Chilean subsidiary Acuinova.

According to Diario Financiero, the rejection of the appeals filed by Nelson Contador, one of the attorneys of Pescanova in Chile, against Acuinova’s bankruptcy process, will smooth the bank funding for working capital.

In addition to this administrative appeal there was a request for the bankruptcy proceedings to be cancelled, the newspaper reported.

Initially, and provisionally, that request was received by a civil court in Santiago de Chile.

Several sources familiar with the process indicated that the appeals were rejected outright, including the expense payment.

The next step that could be taken by Pescanova is to recourse to the Court of Appeals.

Acuinova will now resume the creditors’ meeting process. The trustee Mariclara González would be empowered to initiate a sale process if the creditor banks approve it.

Meanwhile, the three subsidiaries Pescanova has in Chile -- Acuinova, Nova Austral and PescaChile -- have lost the ability to obtain credit to feed the fish in their centres.

These companies were about to receive a credit for USD 15 million but the transfer was frozen after the administrative appeal for review was lodged by one of the attorneys of Pescanova in Chile.

"The bank closed its doors to Acuinova and to Nova Austral for them to receive key funding," added Diario Financiero.

Sources close to the companies explained that "the problem is that the request of the bankruptcy proceedings paralyzes any financing transaction from the banks to feed the fish."

While it was clarified that "the biomass is not dying," it was indicated that there is a risk that the fish do not grow at the desired rate, which will result in lower revenues from commercialization.

Related article:

- Uncertain future for Pescanova’s Chilean subsidiaries

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

Print