PescaChile vessel. (Photo: Pescachile)

Pesca Chile documents seized and layoffs initiated

CHILE
Tuesday, May 07, 2013, 00:40 (GMT + 9)

A reorganisation trustee took possession of Pesca Chile offices, all its financial and accounting records and its assets, and ordered the dismissal of 600 workers of the company, after being declared bankrupt on Friday.

The bankruptcy of the Chilean subsidiary of Pescanova had been requested by the bank HSBC.

The trustee Herman Chadwick stated the process will continue this week "in Punta Arenas to take stock of the seizure of the ships and equipment found there."

"The company in Chile has absolutely been declared bankrupt and there's no doubt, and a creditors’ meeting has been scheduled for the next 42 days," added the trustee.

In addition, the administrator predicted that between Monday and Tuesday "the letters of dismissal of the workers in the company will be issued."

"Notwithstanding this, on Monday I am going to ask for the continuity of the company’s money orders until the first creditors’ meeting," added Chadwick.

Anyway, some creditor banks are expected to open new lines for working capital for Pesca Chile to continue operating.

From the moment the bankruptcy is filed until the creditors' meeting is held -- in mid-July --, the subsidiary of the multinational Galician firm shall be advised by the law firm Nelson & Company Accountant.

Moreover, the authorities of Novaustral – the company that together with Acuinova forms part of Pesca Chile – ensured their operations will continue as usual.

Besides, they made it clear that the seizure process of assets belonging to Pesca Chile would not cause major consequences, reported La Prensa Austral.

According to Novaustral manager, Drago Covacic, "the bankruptcy process continues at present, and there will be movement, but that is what happens when a bankruptcy trustee arrives."

"It is still unknown what asset sale is to take place, so nothing can be ruled out yet, everything will depend on the steps to follow later. Nevertheless, there are many helpful assets," the executive clarified.

The tension in Pescanova also moved to Argentina, where its subsidiary Argenova has already closed one of its three plants and the reorganization proceeding has been requested to start.

Meanwhile, the Spanish multinational firm presented a motion for reconsideration at the Court of Pontevedra No. 1 against the order by which the board was separated from the management of the firm.

"The resolution does not adequately assess the dire consequences that will result from the drastic decision to suspend the powers of administration and disposition of the current administrators" [of the company], Pescanova stated in a statement.

Related articles:

- Argenova undergoing payment suspension phase
- HSBC Bank requests PescaChile’s bankruptcy

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

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