Embattled Spanish seafood giant Pescanova's creditor banks are working on a third proposal to control the company, joining two offers already proposed by other investment firms.
Pescanova, now embroiled in criminal and civil court proceedings over allegations of mismanagement and fraud of the company's books, has had its future guaranteed by two offers from Damm and the investment funds Cartesian and Bluecrest.
According to Europa Press agency, Pescanova's creditor banks are outlining the details of their offer, which would include a discharge of the debt repayment higher to 60 percent — which would make them the largest shareholders with 90 percent of the shares — and a cash injection of EUR 200 million (USD 272 million). The aim, according to sources close to the company, is recovering the maximum of the debt, around a billion euros (USD 1.4 million).
According to a notification of Pescanova's bankruptcy administrator, Deloitte, to the Spanish regulator CNMV, the deadline for submitting agreement proposals is 28 February, and they will accept proposals until 3 March. Furthermore, the deadline to support or vote against the proposals is 31 March.
As Spanish media published, Damm changed its first offer, at the request of the creditor banks. So, if this proposal would be accepted, the banks will recover more than 20 percent of the loan and be shareholder of as much as 10 percent of the Spanish seafood giant. The banks considered that the debt cut was too high in the first Damm bid, between 85 and 90 percent, a percentage that they can now reduce to less than 80 percent.
The final offer shall be supported by 51 percent of the creditors, as well as by Pescanova's bankruptcy administrator and a Spanish court judge.
February 10, 2014
