Pescanova gets deadline extension
Spanish financial regulators have given a little more time to embattled Spanish seafood giant Pescanova, extending the deadline that will decide the company’s fate until 30 April.
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 company initially had until 15 April to present the decision by its creditor banks on whether they would accept an agreement to help settle Pescanova’s debts. If the banks turn it down the company, once the largest seafood company in Spain and one of the largest in the world, will be forced into insolvency.
The Spanish National Securities Market Commission (CNMV) published a notification signed by the Pescanova’s bankruptcy trustee saying a Spanish court judge decided to extend the deadline. According to the notification, the deadline was extended “on request of the procedural representation of the company.”
This extra time allows continuing negotiations to find a compromise to the viability of the Spanish giant fishing group. If not, they will begin with the liquidation process. According to the information published by the Spanish regulator, the new deadline is “nonrenewable.”
On the other hand, regional newspaper “La Voz de Galicia” published that Pescanova is getting support from small creditors for the agreement. According to the same sources, the creditors are backing the offer because it includes the full payment without reduction of the debt of 100 percent of the commercial claimants with a debt lower than USD 137,904.51 (EUR100,000).
The global debt of the smaller creditors is lower than the 10 percent of the company’s total global debt, while the seven main creditor banks amount to 46 percent of the debt, according to this media.