Luxempart fund considers Pescanova's real debt is much higher than that reported by the firm. (Photo: Luxempart)

Luxempart admits EUR 52 million loss after investment in Pescanova

The Luxempart fund from Luxembourg, which owns 5.8 per cent stake in Pescanova, ensures that it has lost about EUR 52.06 million to date due to the investments in the multinational firm from Galicia.

The group filed a lawsuit against Manuel Fernandez Sousa, chairman of the Spanish company, and other directors and executives of the group for "alleged crimes of faking economic-financial information, falsifying annual accounting and fraud," reported Cinco Días.

The admission of such a complaint was requested last week by the Anti-Corruption Prosecutor to the Investigating Court No. 5 of the National Court, Judge Pablo Ruz.

Luxempart considers the financial loss suffered was due to the investments made, which were "induced by deceptive maneuvers of the defendants, who presented an economic and heritage image of Pescanova to that end and of their group of companies that are far from reality," the prosecutors Juan Pavia and Concepción Nicolas pointed out.

The fund has invested in Pescanova in three stages.

In July 2011 it acquired 992,000 shares for EUR 29.7 million, and a few days later it bought further 8,000 shares for EUR 208,401.

In February 2012, it bought 170 bonds convertible into Pescanova shares for EUR 17 million. In this regard, the prosecutors indicated that "the complainant, having disposed of 50 of such bonds for EUR 4.1 million with a forced discount of EUR 0.9 million, claims to have suffered financial damage of EUR 12.9 million because of this investment."

The third investment was on 12 July last year, when Luxempart acquired 677,507 shares for EUR 9.1 million.

The two prosecutors noted that the observations of the Luxembourg fund in its complaint "largely coincides with what was reported by other complainants, which consider their investments in Pescanova were determined taking into account the accounting financial information that was falsely positive of the partnership provided by those responsible, being an objective fact that months later it was declared as undergoing a creditors’ meeting."

While complaints are resolved, the judge decided to cancel the statements to be made by the accused ones and by the witnesses, scheduled for 1 and July 2.

Luxempart argues that "neither the financial statements for the years 2010 and 2011, prepared, informed, and issued by the defendants, nor the economic information provided by them to the National Securities Market Commission (CNMV) during the years 2010, 2011, and 2012 reflect the true liabilities belonging to Pescanova and its consolidated group," the prosecutors added.

Besides, Luxempart argues that the real liabilities belonging to Pescanova are "close to three times the one allocated."

The latest official data reported by Pescanova to the CNMV points out a total debt of EUR 1,522 million, but Luxempart’s calculations indicate that the debt would reach EUR 4,500 million.

Meanwhile, several financial sources believe there is a debt amounting to over EUR 3,000 million.

It is expected the consultancy KPMG this week presents the forensic audit being undertaken on the accounts of the multinational Galician firm in order to identify possible irregularities.

Meanwhile, the head of the Ministry of Economy and Competitiveness, Luis de Guindos, stated that the situation of Pescanova "is not at all extrapolated" to other listed firms.

"Pescanova is a very special and specific case being viewed both by the CNMV, and by the courts, and I think it is not extrapolated at all," the official expressed in statements to Cope chain.

Related article:

- Judge postpones statement from Pescanova’s chairman

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

 

Address:	12 Rue Léon Laval
City:	Leudelange
State/ZIP:	(L-3372)
Country:	Luxembourg
Phone:	+352 437 43 51 01
Fax:	+352 42 54 62
E-Mail:	[email protected]
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