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Pescanova has urged banks HSBC and Morgan Stanley to support the restructuring proposal for two of the subsidiaries that filed for voluntary proceedings last year, La Voz de Galicia reports.
Shrimp processor Bajamar Septima and breaded and battered fish processor Frinova could face a possible liquidation if the majority of creditors do not support the bailout plan for the subsidiaries at the creditors meeting for May 21- 22.
Creditor banks — or the so-called “G7”, that is, Bank Sabadell, Popular, Caixabank, Abanca, BBVA, Bankia and UBI Banca — hold 31.6% of Bajamar Septima’s debt, while for Frinova, banks hold 31.2% of the debt.
The support of the US bank Morgan Stanley, holding 19% of Bajamar Septima’s debt, would be enough to save the subsidiary from liquidation.
Frinova, for its part, could be rescued if UK bank HSBC, holding 19.92% of the subsidiary’s debt, supports the restructuring proposal.
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 — previously chosen by creditors — 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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