Pescanova agreement lands creditor support

By

Pilar Caride, SeafoodSourcecontributing editor, reporting from Vigo, Spain

Published on
May 12, 2014

Official notification from Spanish regulators regarding seafood giant Pescanova has confirmed preliminary reports in Spanish media that the company has secured enough creditor support to stay viable.

The Spanish National Stock Market Commission published a “relevant fact” sent by Pescanova announcing that “There has been notified the decree where there is proclaimed the result of adhesions or votes to favor the offer of Pescanova's agreement by the creditors.”

The agreement, designed to settle Pescanova’s massive debts, required 51 percent of its creditors’ approval to be accepted by regulators — otherwise Pescanova would be forced to declare insolvency. According to the regulators’ report, the company secured 63.65 percent of its creditors’ support.

Pescanova has been embroiled in troubles for more than a year after declining to present to Spanish regulators its annual accounts. Subsequent investigations revealed discrepancies between the company's accounting and its debts, which led to the company filing for bankruptcy proceedings and replacement of its board of directors and president. The signing of the debt-settling agreement has been viewed by many as a potential turning point in the ongoing financial and legal drama.

The announcement described the agreement’s approval as "a moment that marks the beginning of a new phase where the group will be kept as one of the leading Galician multinationals and head-board of a reference group in fishing and aquaculture activity worldwide."

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