Struggling Chilean salmon farmer Nova Austral recently posted significant Q3 2023 losses, and its creditors have rejected its proposed reorganization deal.
In June 2023, while facing sanctions handed down by Chile’s environmental regulator, the company’s first attempt at restructuring failed. Nova Austral then presented its first draft of the recently rejected reorganization plan at the beginning of August. Nova Austral’s creditors postponed their decision six times before voting to reject the proposal.
“A creditors meeting was held today [in which] the creditors rejected the proposal as set forth in the reorganization agreement,” Nova Austral said in a 16 December statement posted to the Oslo Børs. “The creditors agreed on granting the company an opportunity to file a revised draft. Such filing must be made by 28 December 2023, and the creditors will vote on the revised proposal on 10 January 2024.”
Nova Austral – reportedly more than USD 500 million (EUR 455.6 million) in debt and struggling to stave off bankruptcy – posted heavy losses for the third quarter of 2023.
Its quarterly earnings before interest and taxes (EBIT) went negative at USD -6.9 million (EUR -6.3 million), compared to a positive EBIT of USD 12.3 million (EUR 11.2 million) in Q3 2022. Nova Austral posted net losses of USD 20.1 million (EUR 18.3 million) for Q3 2023, compared to the net profit of USD 1.1 million (EUR 1 million) the company turned in Q3 2022.
The company’s harvest over the last 12 months reached ...
Photo courtesy of Nova Austral
