Spanish fishing company Pescanova announced April 5 that it would file for bankruptcy, after the failure of more than a month of negotiations with its creditors.
The company began talks with creditors to avoid seeking creditor protection on March 1 after having accumulated debt of at least EUR 1.5 billion ($1.9 billion), which company directors said could be higher.
Total debt is likely to be closer to EUR 2.8 billion , according to financial sources. The firm reported earnings of EUR 25 million ($32.1 million) for the first nine months of 2012, with debts of EUR 1.5 billion only for that period.
Data for the whole 12 months is still elusive. In mid-March Galicia-based Pescanova said it found discrepancies between its accounts and its bank debt a day after the stock market regulator opened an investigation into the company for possible market abuse.
"Given that it has not been possible in the short term to reach an agreement with its lenders and that its financial situation is at risk of deteriorating, the board ... has decided to seek creditor protection," Pescanova said in a statement to the market regulator shortly after midnight April 6.
Pescanova, which catches, processes and packages fish on factory ships, is the latest in a growing list of Spanish companies which have been forced to the wall amid a deep and prolonged recession. The group's creditors, according to a banking source, include Sabadell, Caixabank, Popular, Santander, BBVA and Bankia.
