Pescanova running out of cash by next week

By

SeafoodSource staff

Published on
April 8, 2013

Pescanova has only enough liquidity to cover payments to suppliers and pay taxes until 15 April in what has become a “dramatic and unsustainable” situation at the Spanish food processing company, which last week said it planned to seek protection from its creditors.

Europa Press quoted sources aware of the situation within the company as saying that if Pescanova fails to complete the sale of a business it has in Chile, it will require a bridge loan of between EUR 50 (USD 65 million) and EUR 60 million (USD 78 million) after next Monday to meet working capital requirements. The company has so far managed to meet its payroll obligations.

An audit has revealed that Pescanova is carrying an additional EUR 1.4 billion (USD 1.8 billion) in previously undeclared debt, putting it in a situation of technical bankruptcy. Its net wealth as of the end of September of last year was only EUR 756 million (USD 989 million).

Click here to read the full story from El Pais >

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