By Pilar Caride, SeafoodSourcecontributing editor, reporting from Vigo, Spain
Published on Friday, November 08, 2013
Embattled Spanish fishing group Pescanova needs EUR 185 million (USD 247.1 million) in working capital and capital expenditures in order to implement its viability plan for the future, according to the plan's summary report.
The plan comes from the financial auditing firm PricewaterhouseCooper, which was tasked with helping to manage the company's financial future while the fishing giant continues to struggle with debt and charges of financial malfeasance.
The document called the amount "necessary." The viability plan also estimated that, after receiving this total, Pescanova's gross operating profit will be EUR 119 million (USD 159 million) for the first year, and the pre-tax profit projected in four years will reach EUR 202 million (USD 269.8 million). Aquaculture will have an important role in this forecast, according to the plan. "The contribution of the business related to aquaculture (products) such as shrimp, salmon, turbot and tilapia is close to 60 percent."
The summary report emerged this week, after the meeting of the last Wednesday's board of directors in the headquarters of Pescanova, located in the Galician village of Chapela. The meeting's aim was to analyze the viability plan. The full document will be send to the bank next week, according to reports published in Spanish media.
The document also noted the implementation of new actions — including implifying the legal structure, centralizing management, creating a new centralized sales department, and outsourcing some logistics activities are some of the proposed actions — could produce as much as 10 percent more profits.
The viability plan estimated the company's sales will be EUR 1.3 billion (USD 1.7 billion) in the first year and EUR 1.6 billion (USD 2.1 billion) within four years.
On the other hand, Deloitte and the Banks continue to negotiate the creditors' agreement. Spanish media published that both parties hope to finalize the agreement by the end of the year and that it is expected an important discharge of the debt repayment in the negotiation of the creditors agreement.