A fishing vessel belonging to Pesca Chile. (Photo: PescaChile)

Pescanova and banks planning to rescue Pesca Chile

SPAIN
Thursday, November 21, 2013, 00:50 (GMT + 9)

The Galician multinational firm Pescanova intends to prevent the sale of the Chilean subsidiary Pesca Chile, which is in the final stage of the creditor’s meeting, considering that it is a strategic asset of the group.

For this purpose, the reorganisation administrator of the Spanish company - Deloitte - and creditor banks are negotiating a solution that would imply granting the cost of the rescue process, which would be about EUR 96 million.

In return, investors will obtain guarantees of preference in the creditors’ agreement that will have to be closed before the end of the year, stated the financial sources consulted by the newspaper La Voz de Galicia.

Deloitte, banks and potential investors still have 20 days to stop the sale of the Chilean subsidiary, as the administrator of Pesca Chile has extended the deadline to receive bids until 10 December.

Initially, the deadline would be on 29 November but trustee Herman Chadwick explained that more time is needed to review the terms of the sales contract.

So far there have been 12 bids for the Chilean company.

Chadwick pointed out the sale process of the assets could be paralyzed if Pescanova offered to pay 100 per cent of the loans it holds, for an amount of USD 130 million (EUR 96.3 million).

To accomplish this, Pescanova would need to find an investment partner in less than 20 days.

"We hope we will have settled some of the sales by December, for which we need to discuss the draft contract of the chosen bidders and have them before the reception date," stated the trustee, according to the newspaper La Tercera.

Related article:
 

- Fernandez de Sousa claims EUR 663,000 for Pescanova’s 'unfair lay-off'
- Pesca Chile documents seized and layoffs initiated

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

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