Pescanova reports 1Q losses
Spanish seafood giant Pescanova’s newest financial report to the Spanish regulator CNMV shows a net loss of EUR 16.9 million (USD 22.88 million) in the first quarter of 2014 for the Pescanova’s controlling company.
According to the report, the consolidated turnover experimented a decrease by 26 percent in comparison with the same period of 2013, totaling EUR 206 million (USD 279 million). Pescanova said for a correct interpretation of the data it should be noted that subsidiary Pesca Chile is not included since it is available for sale.
The company is working its way through the initial steps of a recovery plan after emerging from bankruptcy earlier this year and signing an agreement to settle debts with its creditors. The company noted in its report that the company’s commercial activity has been residual since initially filing for bankruptcy proceedings last year, obtaining a turnover in the first quarter of 2014 of EUR 1 million (USD 1.45 million). During the first quarter of 2014 the operating balance of Pescanova SA has meant a loss of EUR 3.4 million (USD 4.6 million), as a consequence of "derivatives of the costs of structure that it supports.”
Pescanova also noted that by the end of the first quarter of 2014 the company was "in situation of negative equity," which the company hopes the recently approved creditors’ agreement will reverse.
Meanwhile, the company has also established a Commission of Vigilance, a condition of the judicial approval of the creditors' agreement. The commission’s function will be "to control the fulfillment of the agreement and the formation of the new Pescanova, protecting the creditors´ interests in the terms foreseen in the above mentioned Agreement," according to Pescanova’s communication.
The commission is composed of three members representing Pescanova, the trustee of bankruptcy and the creditors. Jacobo Gonzalez-Robatto, the representative of the creditors, is the president of the commission; whereas Deloitte, the bankruptcy trustee, will be the member of the commission who is going to guard that the ordinary operative will be that foreseen in the agreement.