A vessel belonging to Pescanova. (Photo: Pescanova)
Creditor banks assume Pescanova’s rescue without Damm
SPAIN
Friday, April 25, 2014, 02:30 (GMT + 9)
The Galician multinational firm Pescanova will not ultimately be under the control of the brewery company Damm but under that of the creditor financial entities.
Less than a week after the legal deadline for Pescanova to go into liquidation expires, Damm failed in its attempt to control the company, several Spanish media reported.
The majority shareholder of Pescanova -- with 7.8 per cent of the total -- agreed to move apart for the banks Sabadell, Popular, CaixaBank, NCG and BBVA to assume its role in the rescue of the firm.
Now Pescanova’s board, its trustee Deloitte and banks expect that judge Roberto de la Cruz accepts to modify the terms of the creditors’ agreement.
Financial sources consulted by the newspaper La Voz de Galicia consider that "everything is progressing smoothly for that to be the formula, if authorized by the judge."
In six days, banks will have to take the new terms for the judge to analyse them, with no possibility of an extension.
If the judge rejects the new or modified agreement, Pescanova will go into liquidation.
Given that possible scenario, creditor banks have already devised a rescue plan: to buy the productive unit, exchanging debt for equity; and inject around EUR 115 million.
The disbursement will be proportional to the debt each entity has in the Galician company:
- Sabadell: a debt of EUR 226.7 million;
- Banco Popular: EUR 181.9 million;
- CaixaBank: EUR 177.7 million;
- NCG: EUR 147.2 million;
- BBVA: EUR 104.6 million.
Industry sources told the newspaper Faro de Vigo that a frantic activity is expected in the coming days.
Related article:
- Pescanova’s counselors propose marginalize Damm
By Analia Murias
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www.seafood.media
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