Jul
21
Four Pescanova Spanish subsidiaries which filed for voluntary bankruptcy protection in early July have now been declared bankrupt and will start restructuring proceedings.
Shrimp processor Bajamar Septima, trader Pescanova Alimentacion, logistics and cold storage division Frigodis and surimi supplier Frivipesca Chapela filed to enter bankruptcy proceedings on July 7.
The commercial court of Pontevedra, the Galician town where Pescanova is based, has now accepted their application, reported La Voz de Galicia.
This means the subsidiaries will now start proceedings to restructure their debt.
“Basically, subsidiaries will go through the same process as Pescanova, the parent company, as it is already planned in the restructuring proposal,” a Pescanova spokesperson had told Undercurrent News in early July.
In Spainsh law, voluntary proceedings occur when the debtor files for insolvency.
The proceedings can have two possible outcomes: an agreement reached between debtor and creditors in order to settle the debts, or the liquidation of the debtor’s assets.
The last option could lead to the termination of the business.
Pescanova’s goal is to reach an agreement with creditors, the spokesperson had said.
Pescanova’s creditor banks have reportedly said the subsidiaries’ debt is held by just “a few creditors” and an agreement should be easy to reach.
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