Pescanova chairman Manuel Fernández de Sousa. (Photo: FIS Stock)

Pescanova shareholders present criminal lawsuit

SPAIN
Friday, April 12, 2013, 01:40 (GMT + 9)

A group of minority shareholders of Pescanova has filed a criminal lawsuit in the High Court, requesting a sentence of up to a six-year imprisonment for the board of directors of the Galician multinational firm.

The lawsuit is based on alleged corporate crime, such as distortions of the annual accounts and fraud or unfair management.

To the counselor Joaquin Yvancos, who represents the group, the board allegedly committed other crimes, such as the use of information as an insider in the stock market, as several companies sold their shares before the creditors’ meeting presented by Pescanova, reported the agency Europa Press.

The crime of forging economic-financial information "in order to attract investors or depositors, placing any type of financial asset or obtaining financial gain by any means" is punishable with a sentence of up to four years.

The complainants allege in the lawsuit: "In the event that the investment, deposit, asset placement or funding is obtained, which can be detrimental to the investor, depositor, acquirer of the financial assets or to the creditor, the sanction shall be imposed in the superior half. If the loss caused were obviously serious, the sanction to be imposed shall be from one to six years in prison and a fine of 6 to 12 months."

The complainants argue that the National Securities Market Commission (CNMV) did not develop "a diligent activity, thorough monitoring with determination and could not promptly perceive the true situation of the company."

And they accuse the CNMV of having reacted "late, slowly and unwisely."

Furthermore, in the lawsuit they include the auditing firm BDO due to the fact that it is considered that its conduct was "unacceptable and unjustifiable."

Meanwhile, Pescanova is facing liquidity issues in five countries in which it operates: Argentina, France, Uruguay, Brazil and Chile, as well as tensions in the cash flow belonging to the firms Pescafina, Promarisco and Bajamar, the newspaper La Voz de Galicia reported.

According to the data collected in a financial report of one the major creditors, the company may have a cash threshold for a period lasting "between 15 and 20 days."

The document also details that "it is not possible to specify a date for the cash to run out, a problem the company had before filing the creditors’ meeting, which was known when a EUR 50 million-EUR 60 million loan was attempted to be negotiated with banks."

While Pescanova’s situation "is complicated", sources close to the group said "it is working as usual."

Related article:

- Pescanova may be left without liquidity in a week

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

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