Aker Seafoods today announced it will borrow up to NOK 75 million (USD 11.9 million, EUR 8.8 million) from the company's main shareholder, Aker ASA.The loan is caused by liquidity challenges.
The loan brings Aker Seafoods' total debt to Aker ASA to NOK 113 million (USD 18 million, EUR 13.2 million).
Aker Seafoods has recorded sales growth and improved results this quarter, compared with the previous three quarters. However, high activity during the winter season increased working capital requirements, and a lot of capital is tied up in large stocks of frozen fish and ready-made seafood products.
Prior to the last loan agreement, Aker Seafoods had interest-bearing debt of NOK 1.5 billion (USD 239 million, EUR 175 million). Aker ASA set a condition that Aker Seafoods must implement financial restructuring that includes both debt reduction and equity expansion. Aker ASA will, if certain conditions are met, contribute in an equity issue, with capital reflecting its ownership stake.
"The liquidity problem has found a short-term solution, but we are working to find a long-term solution to build a stronger financial fundament for Aker Seafoods. This effort is underway, and we will update the market as soon as we have new relevant information," said Yngve Myhre, CEO of Aker Seafoods.
March 22, 2009
