Pescanova products. (Photo: Pescanova)

New time extension to submit bids for Pescanova

SPAIN
Thursday, January 16, 2014, 23:30 (GMT + 9)

After defining 20 January as the deadline for choosing the best option presented to control the Galician multinational Pescanova, nearby sources indicated that the deadline will be extended a few "weeks."

The move was made taking into account the situation of the company and the fact that the liquidation of the Chilean subsidiary, Pesca Chile, is paralysed, newspaper La Voz de Galicia reported.

The Spanish main creditor banks decided to extend the deadline for those interested in taking control of Pescanova -Damm and Centerbridge-BlueCrest investment funds to allow them to improve the offers presented.

Among the largest creditors are Sabadell, Popular, NCG Banco, Bankia, CaixaBank, Santander, BBVA and UBI Banca banks.

Currently, financial institutions are still considering "unacceptable" such proposals because of the high cuts required.

The same sources explained that the Spanish multinational "has no liquidity problems." That is, it still keeps intact in hand EUR 10 million of the EUR 56 million emergency loan it was granted months ago.

"The trustee has done a good job and cash has been kept," the sources added.

Meanwhile, Pesca Chile sale "is stopped" in order "to match the pace of Pescanova’s creditor agreement and the lifting of insolvency procedures in Chile," the sources highlighted.

The negotiation process could extend for several more weeks.

Pescanova debt amounts to around EUR 4,300 million, according to latest accounts reformulated and published by the National Securities Market Commission (CNMV), Cinco Días informed.

On the other hand, Manuel Fernandez de Sousa, former president of the multinational company, will testify again before High Court Judge, Pablo Ruz.

The judge investigates a lawsuit against Fernandez de Sousa and Joaquin Viña, chief responsible for the business group audit and accounting consolidation, for alleged fraud.

Those familiar to the process of the multinational company sale estimate that it has liquidity to remain in operation only until the end of the month, ABC reported.

Financial advisors consider only two scenarios for the fishery’s future: its liquidation or the purchase of the productive unit.

For his part, Galician Minister of Economy and Industry, Francisco Conde, claimed "effort" and "high-mindedness" to the parties involved to reach an agreement soon.

"The possible liquidation of Pescanova is not on the agenda, in any case," stated the official, newspaper Faro de Vigo informed.

Related articles:

- Pescanova adviser resigns
- Deadline extension for Damm to improve Pescanova bid

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

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