Pescanova's chairperson, Juan Manuel Urgoiti. (Photo: Stock File)

A new Pescanova firm to be born in April?

SPAIN
Monday, March 03, 2014, 23:50 (GMT + 9)

Today the multinational firm Pescanova is presenting the settlement offer submitted by Damm brewery and by Luxempart, with the support of the creditor banks, before the Commercial Court number 1 of Pontevedra.

The idea is to try to revive the Galician fishing company and to create a 'new Pescanova' with new board and CEO, the agency Europa Press reported.

The company gave the nod to the "hybrid" offer from the creditor banks and Damm to refloat it and avoid liquidation.

The plan provides for a rebate of between 60 per cent and 70 per cent and an investment of over EUR 200 million, as it was stated by sources familiar with the talks.

Most of the planned capital injection will be provided by the creditor banks, which will become majority shareholders of the Galician company, with over 60 per cent of the capital.

The rest of the economic injection, amounting to around EUR 30 million, will be provided by Damm and Luxempart, which will hold up to a 30 per cent stake.

This offer, which will also reserve between 5 per cent and 7 per cent of the capital to minority shareholders does not prioritize the subsidiaries from Portugal, Chile and Guatemala. These companies must perform a debt restructuring with the affected banks.

Also, the creditor banks will conduct a debt issue for EUR 250 million.

Last Friday, the highest governing body of Pescanova, chaired by Juan Manuel Urgoiti, met to evaluate the proposal, which must have the support of 51 per cent of creditors.

If this initiative is successful, the brewer firm will become the industrial partner needed by banks needed to advance their bid. Their goal is to recover the maximum possible debt, about EUR 1,000 million, after cancelling approximately EUR 2,000 million liability of the Galician multinational firm.

Damm would use Pescanova’s distribution network for their products to be in national and international markets, the newspaper La Voz de Galicia informed.

"Damm conceives a nurturing Pescanova centered in the Iberian Peninsula, Italy and France. They’re inside, they know the business and how to take advantage of this logistics infrastructure," according to sources consulted by the Galician newspaper.

Furthermore, the consortium of international funds, led by former defense minister Eduardo Serra, refused to go ahead with another proposal because he lacked sufficient information to do so on time, insiders said.

That deal envisaged a capital injection of EUR 300 million and a debt reduction of between 70 per cent and 80 per cent.

"Despite the trustee’s efforts and contribution, the consortium is unfortunately not in a position to present a proposed agreement for consideration before the deadline on March 3 set by the judge," the sources added.

Related article:

- Hectic meetings to close Pescanova agreement before deadline

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

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