Pescanova liquidity is running out. (Photo: FIS Stock)

Pescanova may be left without liquidity in a week

SPAIN
Wednesday, April 10, 2013, 00:40 (GMT + 9)

The multinational company Pescanova may have liquidity available until 15 April to face payments to suppliers, taxes and working capital needs, unless some of its assets are sold.

According to what the agency Europa Press reported, the current situation of the firm could become "dramatic and unsustainable" if by that date the sale of any assets in Chile, such as PescaChile, the holding central firm grouping the salmon firm Acuinova Chile, Nova Austral and the recently acquired Cultivos Marinos Chiloé, does not take place.

Industry sources stated that from next week, Pescanova would need a bridge loan of approximately EUR 50 - 60 million to meet its obligations.

Currently, the company is paying the wages to its employees.

Meanwhile, Pescafina, a firm of which Pescanova owns 95 per cent of its shares, is the first branch of this multinational firm requesting a creditors’ meeting, in an attempt to ensure business continuity until its financial situation clarifies.

Meanwhile, the creditor banks showed their willingness to launch a feasibility and negotiation plan for Pescanova to abandon the creditors’ meeting phase. And they placed a provision of 25 per cent of the debt allocated to the company, but that percentage would rise to 100 per cent if within one year this creditors’ meeting phase is not resolved.

Banking sources estimate that the Galician business group's debt amounts to EUR 2,700 million, that is to say, more than EUR 1,200 million above what has been declared among the audited liabilities: EUR 1,522 million at the end of the third quarter of 2012.

Only five of the twelve counselors who form part of Pescanova administration council voted against the request of the voluntary creditors' meeting and the revocation of the auditor from BDO Auditores.

Meanwhile, there is a possibility that PwC and Deloitte engage in reviewing the accounts and investigating the potential fraud after the BDO revocation. Pescanova has already hired the law firm Albiñana & Suárez de Lezo to be in charge of issuing a lawsuit against the auditing firm.

Pescanova justified the dismissal of BDO claiming that this firm "has lost independence" because it "is in a situation of conflict of interests while trying to defend its professional performance and responsibility."

Furthermore, the National Securities Market Commission (CNMV) is expecting for the company to complete the financial information this week for the second half of last year, considering that the one that was sent is "incomplete and inadequate."

For their part, representatives of CC.OO. raised the issue of the "convenience" to create a discussion meeting with the presence of "the parties involved," that is to say, workers, the management of the company, Xunta de Galicia, the central government and where appropriate, the creditors’ meeting proceedings administrators to the Minister of Economy and Industry, Francisco Conde, the newspaper Faro de Vigo reported.

Related articles:

- Pescafina requests creditors’ meeting
- Pescanova could sell assets in Chile to reorganize finances

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

Print