Invertec signed a contract in which it recognises the debt it holds with 12 financial entities worth USD 153 million. (Photo: Stock File/FIS)

Invertec seals last deal of 2009

CHILE
Tuesday, January 05, 2010, 03:20 (GMT + 9)

The salmon farming company Invertec Pesquera Mar de Chiloe (Invermar) was able to seal an agreement on 30 December with Chilean financial institutions, which will allow it to restructure its liabilities and improve its management.

In what was the industry's last renegotiation of the year with Chilean banks, Invertec signed a contract in which it recognises the debt it holds with 12 financial entities worth USD 153 million.

This number could rise further still, to USD 166 million, due to asset capitalisation.

Invertec, the property of the Montanari family, is one of the main Chilean producers of salmon. It registered losses worth USD 26 million during the first nine months of 2009, while losing USD 51 million in the same period of 2008.

These losses demonstrate a complex economic present, which is why the company has been in talks to restructure its financial liabilities with its creditor banks since late 2008.

The year 2009 was a difficult one for all of Chile's salmon industry. The economic crisis and losses caused by the impact of infectious salmon anaemia (ISA) virus left sector companies with no choice but to renegotiate their debts with local banks. In addition, these agreements will assist them in acceding to new lines of credit.

Invertec was the last Chilean salmon farming firm in closing an agreement in 2009, but other companies like Ventisquero and Cultivos Marinos Chiloe continue negotiating.

The banking sector recognises that the debt negotiations were difficult, mostly because companies resisted the pledging of requested shares.

In the case of the Montanari family firm, the situation was complicated still more by a payment agreement closed with its salmon feed subsidiary, Salmofood SA, for the sum of USD 28.4 million.

The agreement implies that Invertec will pay the debt of its subsidiary by taking on its debt with its creditor banks. This situation was the reason for revisions and ample studies on the part of financial entities, which delayed the operation.

Related articles:

- Pesquera Invertec suffers USD 26 mln loss
- Banks approve Invertec debt restructuring

By Silvina Corniola
[email protected]
www.seafood.media

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