One of the vessels of the fishing fleet belonging to Argenova. (Photo: Argenova)

Pescanova’s subsidiary declared in creditors’ meeting phase

ARGENTINA
Friday, June 07, 2013, 23:40 (GMT + 9)

An Argentinean judge declared the creditors’ meeting process in Argenova, a subsidiary of the multinational Galician firm Pescanova in Argentina. This was reported by Deloitte, the reorganisation administrator of the multinational Galician firm, to the National Securities Market Commission (CNMV) in Spain.

The measure was set by the head of the 50th National Commercial Court of First Instance in Buenos Aires, Horacio Francisco Robledo, a month after the Argentinean company requested the opening of this procedure in order to preserve its value.

According to the document submitted by Deloitte to the Commission, "the reorganization process has been declared through a court decision dated 4 June."

Despite being declared in creditors’ meeting phase, Argenova will continue with its normal activity and its fleet, consisting of a total of 19 boats.

In addition, the company has an office in Buenos Aires and two plants in the provinces of Chubut and Santa Cruz.

This subsidiary belonging to Pescanova is engaged in fishing activities from the capture to the industrialization and export of crustaceans, cephalopods and fish found on the Argentinean maritime platform.

Argenova is the third branch of the Spanish multinational firm undergoing the creditors’ meeting phase, since in early May Pesca Chile’s bankruptcy was confirmed and last Friday, Pescanova Brazil requested the administrative reorganisation.

Meanwhile, Pescanova expects to receive a EUR 55 million loan, which had been scheduled to be signed on Friday, but all indications show that it will be ratified for next week, sources familiar with the process said.

The allocation of this loan is backed by 10 creditor banks: Bankia, Sabadell, Popular, NCG Banco, CaixaBank, Deutsche Bank, Santander, BBVA, Bankinter and Ceiss.

After several meetings, banks and Deloitte agreed that this "express" loan is crucial for the company to continue.

The allocation of this loan was subject to two conditions:

• The brand Pescanova is set as guarantee to execute the operation;
• The liquidity injection will be destined to fund working capital and will be considered a privileged debt, with an interest of Euribor plus 4 per cent through 2013.

Related articles:

- Pescanova’s subsidiary requests reorganisation meeting
- Argenova undergoing payment suspension phase

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

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