Jan
29
Damm improves its bid for Pescanova
Filed Under EN
The brewer Damm improved its bid to get Pescanova. (Photo: 1997 CC BY -SA 3.0)
Damm improves its bid for Pescanova
SPAIN
Wednesday, January 29, 2014, 02:00 (GMT + 9)
After several days of negotiations, the creditor banks of Galician Pescanova and the multinational consortium led by Damm brewery would have reached an agreement.
According to several sources consulted by the newspaper La Voz de Galicia, Damm, Luxempart and KKR and Ergon Capital Partners funds would take over 51 per cent of the fishing company after agreeing with financial institutions on their demands.
This implies that banks could recover more than 20 per cent of the debt and enter the multinational company with up to 10 per cent of the capital.
So far, the main obstacle in negotiating with creditors was the refusal of major financial institutions caught in Pescanova to accept a 90 per cent cut of the debt, as requested by the brewery and its partners.
Damm was always seen as the industrial partner to ensure the future of the firm, unlike Centerbridge and BlueCrest funds, without any industrial experience. These funds proposed cuts of 70-80 per cent and to raise fresh cash contribution to EUR 300 million.
Pescanova faces insolvency proceedings since April 2013, while a series of crimes in which its president, Manuel Fernandez de Sousa, among other executives, would have incurred is under investigation in the High Court.
Damm Sources say their new offer is solid, and “combines capital injection and industrial experience,” Europa Press agency informed.
The improved offer comes just five days before the deadline set by law for a company undergoing bankruptcy proceedings to go into liquidation.
Pescanova’s liabilities are around EUR 3,600 million.
Related article:
– New time extension to submit bids for Pescanova
By Analia Murias
editorial@fis.com
www.fis.com
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