The Spanish seafood group Pescanova is reportedly close to selling Falkland Islands Lafonia Seafood, which has operations valued between €15 and €20 million, reported the Spanish newspaper Cinco Días.
The approval of the creditors’ agreement considering reductions over 90% of the debt helped the Galician multinational firm Pescanova achieve a net profit of EUR 1,790 million in the first half of this year. The six-month accounts submitted to the Spanish National Securities Market Commission (CNMV) show the cancellation of the firm’s bulky insolvency has meant the entry of EUR 2,3 million, which in the accounts figure as income.
Argentina’s government could at any stage now force Spanish seafood group Pescanova to divest its squid fishing operation based in the Falkland Islands, as it is reportedly breaching fishing legislation, said Spanish media.
One of Spain's leading fishing companies Pescanova (under administration) faces a decisive deadline for its future, while banks finalize the negotiation of a creditors’ agreement based on debt cuts and investment in the firm, according to Europa Press based on sources familiar with the situation of the company.
The process of selling Pesca Chile continues, despite Pescanova's attempts to slow down the liquidation of the company and its Chilean subsidiaries until the situation of the Galician multinational in Spain is resolved.
The bankrupt Galician multinational Pescanova has three proposals for its recapitalization: one from Damm, Luxempart, KKR and Ergon Capital Partners; another from Centerbridge and Bluecrest investment funds, and a third one from the major domestic creditor banks, according to reports from Vigo.
The Galician multinational firm Pescanova needs an estimated 185 million Euros in working capital to be run in a year, according to estimates made by the consulting firm PricewaterhouseCoopers (PwC).
The auditing firm KPMG found out that the Galician multinational firm Pescanova ‘blew up’ up to 1,264% the price of seafood products sold to the 14 instrumental (straw) companies with which it operated through fake invoices.
The new chairperson of the Galician multinational firm Pescanova, Juan Manuel Urgoiti, authorized the investment bank Lazard to implement an urgent debt refinancing process with the creditor entities.
The main creditor banks of the Galician multinational firm Pescanova, (which is under a probe from the Spanish stock market regulator), argue that the only way the firm can reorganize its financial situation is through the total or partial sale of its subsidiary in Chile by means of a Preventive Judicial Agreement.