Damm president Demetrio Carceller. (Photo: FIS Stock)
Hectic meetings to close Pescanova agreement before deadline
SPAIN
Thursday, February 27, 2014, 03:40 (GMT + 9)
Pescanova faces a decisive week for its future, while banks finalize the negotiation of a creditors’ agreement based on debt cut and investment in the firm. Such was informed to Europa Press by sources familiar with the situation of the company, who noted that in the last days contacts and meetings with several bands are intensifying in order to revive the firm.
The deadline for the agreement in question, which should be supported by 51 per cent of the creditors after receiving the approval of the receivers and the judge, is on Friday, a year after Pescanova admitted its insolvency.
The creditor banks have intensified contacts these days in an effort to close a deal before 3 March, the deadline set by the Commercial judge of Pontevedra.
On Monday, financial institutions reconvened in Madrid with representatives of Damm group. This group remains the favourite to revive the company, as it is its major shareholder, and it may become the industrial partner that banks need to move the project forward.
In this regard, Economia Digital newspaper indicates that banks have devised a plan for which they count on Demetrio Carceller, Damm president. The proposal is to take control of the Galician company, with the Catalan beer firm becoming its industrial partner. This plan would write off EUR 2 billion of Pescanova’s, debt but around EUR 1 billion would be saved and Damm would not have the majority in the future board.
Meanwhile, international funds have not abandoned this race and have convinced former Minister Eduardo Serra, president of Everis Foundation, to head up a consortium.
BlueCrest, Knighthead, Du Pont, Scoggin Capital Management and J. Goldman & Co. L.P. are trying to improve their offer for Pescanova, which so far includes a capital injection of EUR 300 million and a cut between 70 and 80 per cent.
The judge set a deadline of Friday 28 February for submitting proposals of agreement, so documents submitted until 3 pm Monday 3 March will be admitted.
Furthermore, the court set 31 March as deadline for adhesions or votes against the proposed agreement, which may be carried out until 1 April. From that date, the fate of the company would be cast.
If no agreement is reached by the deadline, Pescanova will enter into liquidation.
The Galician multinational reported sales of more than EUR 1.2 billion in 2013, an amount that represents a decline of 18 per cent yoy, but allows the company to have liquidity at least until next April to pay salaries and debts to suppliers.
Related News:
- While proposals are analyzed, what is happening with Pescanova’s bonds?
- Pescanova billed more than EUR 1,2 billion in 2013
- Damm improves its bid for Pescanova
- New time extension to submit bids for Pescanova
[email protected]
www.seafood.media
|