Pescanova products. (Photo: Pescanova)

Deadline to adhere to agreement by Pescanova’s creditors extended

Commercial Court number 1 of Pontevedra has decided to extend the deadline for creditors to adhere to the agreement of Pescanova until 29 April. This extension will allow the parties to continue negotiations to find a compromise to the viability of the Spanish multinational firm.

The ruling by Judge Roberto de la Cruz states that "the deadline granted may hinder the willingness and the correct voting by all creditors," the agency Europa Press reported.

Therefore, this period, which expired today, was extended for two additional weeks.

However, the judge warned that extension was set "to provide creditors with the chance to decide and vote on the only proceeding admissible agreement proposal."

And he explained that the fact that only a proposal was admissible for proceedings involves "its strict invariance."

This new deadline is "absolutely non-renewable" and eventual new requests will not be "even addressed," adds the resolution.

On 20 March, the judge agreed to accept the agreement proposal for proceedings and the viability plan and payments of Pescanova. But it has not been possible to reach an agreement between creditor banks and the consortium formed between Damm brewery and Luxempart investment fund.

Creditor banks and the consortium negotiated last week, but the parties did not reach an agreement to support the creditors’ proposed agreement filed at court.

The financial institutions seek to recover EUR 1,000 million of debt but the registered proposal made by the consortium led by Damm considers around EUR 700 million.

Some of the main creditor banks proposed the survival of Pescanova through an injection of capital amounting to EUR 115 million and the capitalization of about EUR 2,000 million of debt, which would imply a deduction of less than 70 per cent, Cinco Dias reported.

This Plan B was introduced on 30 March to the insolvency administrator Deloitte by the group composed of Sabadell, Popular, CaixaBank, Novagalicia Banco and BBVA.

According to El Confidencial, the new date is bad news for the President of Xunta de Galicia, Alberto Núñez Feijoo, since the liquidation of the company will be settled a month before the European elections, scheduled for 25 May.

Related article:

- Pescanova faces decisive hours

By Analia Murias
editorial@seafood.media
www.seafood.media

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