Selonda Aquaculture secures €110 million in loans

Mediterranean sea bass and sea bream producer Selonda Aquaculture SA has signed basic loan agreements to refinance its borrowings with its lending banks.

Following decisions taken at an Extraordinary General Meeting of Shareholders in November last year, the Greece-based company has confirmed the signing of debenture loan programs on 31 December 2014 amounting to EUR 100 million (USD 130.8 million), EUR 8 million (USD 9.5 million) and EUR 2 million (USD 2.4 million) for the settlement of outstanding amounts.

The agreement is part of a major restructuring plan, incorporating the group’s total borrowings. Disbursement of the loans depends on a number of factors, including the establishment of agreed collateral.

Selonda reported improved results for the first nine months of 2014, achieving a turnover of EUR 104.6 million (USD 124.4 million) compared to EUR 100.6 million (USD 119.6 million) for the corresponding period of 2013. Its EBITDA loss of EUR 900,000 (USD 1.1 million) was a considerable improvement on its EUR 30.4 million (USD 36.1 million) loss in the first three quarters of 2013.

Meanwhile, rival Greek producer Nireus Aquaculture SA informed its investors and regulating authorities that it was unable to conclude the actions needed to restructure its bank loans, including the capitalization of its debt, by the 31 December 2014 date it had targeted earlier in the year.

However, the company’s management believes that a final agreement with the lending banks will be reached soon and that the group will be able to proceed with the relevant corporate actions and decisions with effect from 31 March.

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