Aug
7
Turbot fish farm in Mira. (Photo: Pescanova)
Pescanova’s turbot plant requests moratorium to cancel debt
PORTUGAL
Thursday, August 07, 2014, 23:50 (GMT + 9)
In the short term, it appears that the only solution to maintain Pescanova’s Portuguese subsidiary operational — Acuinova Actividades Piscícolas — is to refinance bank debt, which amounts to about EUR 100 million.
The banks Sabadell, Popular, Abanca, Bankia, BBVA, CaixaBank and UBI still do not know what to do with the turbot plant located in Mira, Portugal. There were some attempts to sell the fish farm, including negotiations with the multinational firm Stolt Sea Farm, from Norway, which failed.
Right now, banks are able to refinance the debt, inject liquidity to feed the turbot and ensure the maintenance of the plant. And according to the newspaper La Voz de Galicia, it is anticipated that by the end of 2014, banks give effect to their entry into Pescanova’s capital and take control of the group.
Sources close to the negotiations indicated that the intention is to achieve an agreement with the Portuguese banking for it to commit itself not to require Acuinova Actividades Piscícolas a debt of EUR 99.8 million for a period of two years.
In addition, the Portuguese subsidiary management intends to request a new credit line for about EUR 30 million to EUR 40 million.
According to the economic and financial report issued by the administrator of Pescanova’s subsidiary, Deloitte, the debt of the farm in Mira is in the hands of CaixaBank, Geral, BPI, Banco Espirito Santo and BCP.
On 1 July, Pescanova’s receivers recognized that the turbot plant operates at 50 per cent capacity and to reactivate it “a significant injection” of capital would be required.
The Galician multinational firm has already received a total of EUR 58.7 million in aids by the Government of Portugal, but the Portuguese authorities do not want to provide more support due to the firm’s failure to meet the production and employment goals.
In 2010, the plant produced 2,880 tonnes of turbot; in 2011, production amounted to about 3,931 tonnes; and in 2012, it was 4,397 tonnes, although it was expected that about 7,000 tonnes would be produced.
In early July, Stolt Sea Farm indirectly accused the Galician multinational firm Pescanova of “flooding” the market with very small and cheap turbot specimens in order to obtain liquidity. This Norwegian business group has two fattening centres and six plants in Galicia, and it is Pescanova’s largest competitor.
Related articles:
– Uncertain future for Pescanova’s turbot plant
– Stolt Sea Farm indirectly blames Pescanova for turbot price drop
By Analia Murias
editorial@fis.com
www.fis.com
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