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Pescanova’s creditor banks believe the ten subsidiaries that filed for voluntary bankruptcy proceedings last year will be rescued, following the shareholders’ meeting to be held on May 29.
This means the possible liquidation of the shrimp processor Bajamar Septima and the breaded and battered fish processor Frinova is out of the question, La Voz de Galicia reports.
Creditor banks — or the so-called “G7”, that is, Bank Sabadell, Popular, Caixabank, Abanca, BBVA, Bankia and UBI Banca — hold 30% of Bajamar Septima’s debt.
For Frinova, banks hold 34% of the debt, but the majority of creditors are expected to support banks’ restructuring plan to avoid liquidation, sources told the local newspaper.
Back in March, Pescanova submitted its restructuring proposals for the ten subsidiaries that filed for voluntary bankruptcy proceedings last year.
The bailout proposal for the subsidiaries practically coincides in all aspects with the plan proposed by the company’s creditor banks, which was submitted to the Spanish judge previously.
Pescanova’s board had proposed a write-off that exceeds 95% of the debt for nine of its subsidiaries in bankruptcy, with the exception of the turbot fry plant Insuina, with a debt haircut of 70%.
This is almost the same of what has been revealed from the creditor banks’ proposal, which involves an average haircut of €1 billion.
The only major difference in the bailout plans is the deadline in which Pescanova’s shareholders need to back the judge-approved proposal over the future of the seafood giant.
In their plan banks set a Nov. 30 deadline for Pescanova’s shareholders to back the restructuring plan approved by the judge. In case they did not back any subsidiary’s bailout plan, the company would enter liquidation.
Click here to read the original story (in Spanish).
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