Damm beer factory (Photo Credit: 1997 CC BY-SA 3.0)
Pescanova’s offer does not convince creditor banks
(SPAIN, 3/21/2014)
The Galician multinational firm Pescanova offered its creditor banks power to control up to 70 per cent of the company but this proposal was not convincing enough.
Sources consulted by Europa Press reported that the banks – Sabadell, Popular, Novagalicia, CaixaBank, Bankia, BBVA and Santander -- warned that the agreement presented did not change anything from what had been settled.
The banks seek to recover EUR 1,000 million of debt that was pending while the consortium led by Damm and Luxempart lowered that figure to EUR 700 million in the board of Pescanova.
Creditor banks planned to meet on Thursday in Madrid to discuss the situation and even address their own plan B. This proposal includes banks and an industrial partner other than the brewery firm Damm.
The main objective of the banks is to prevent the liquidation of the Galician multinational firm.
The new proposed agreement filed with the Commercial Court No. 1 of Pontevedra preserves the points of conflict that the creditor banks had required to be modified.
These banks wanted to reduce the debt to 60 per cent while Damm and Luxempart keep the proposal of 72 per cent.
The document highlights that the intention has been to avoid "opportunistic and short-term approaches."
"The reductions had not been intended to artificially lower as well as the terms that we know are necessary, with the sole purpose of attracting votes and maximizing chances of approving this covenant," the text added.
The financial restructuring operation undertaken by Damm and Luxempart to avoid liquidation implies that the current shareholders will lose most of the money invested. In addition, the average effective reduction from the debt will be between 60 per cent and 90 per cent.
The new company -- Nueva Pescanova – will get new funding for EUR 150 million. Out of this total, EUR 37.5 million will be new capital and EUR 112.5 million will be super senior debt.
New Pescanova is expected to integrate all the assets and liabilities of the Spanish companies after setting express insolvency in the respective subsidiaries.
This new company will have a capital of EUR 72.2 million.
Finally, it is expected that the creditors of less than EUR 100,000 will not be subjected to a reduction in the parent firm, the agency EFE reports.
Related article:
- Pescanova’s creditor banks assess not supporting Damm’s proposal
By Analia Murias
editorial@seafood.media
www.seafood.media
Information of the company:
Address:
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Calle José Fernández López, s/n
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City:
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Chapela - Redondela
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State/ZIP:
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Pontevedra, Galicia (36320)
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Country:
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Spain
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Phone:
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+34 986 818 100
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Fax:
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+34 986 818 220
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E-Mail:
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info@pescanova.es
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More about:
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