On Friday, a Chilean court declared that Pesca Chile was officially bankrupt.Pesca Chile, a subsidiary of Pescanova, is a fishing company that operates eight vessels. It is the parent company of Acuinova Chile and Nova Austral, which are salmon farming operations in Chile.
The company is in debt to the tune of $70-million owed to eight different banks, which led to HSBC bank’s request for bankruptcy of Pesca Chile in early April.
Pesca Chile is located in Porvenir, and is the source of employment for over 500 workers in operations. According to Drago Covacic, the manager of of Nova Austral, “This was announced a few days ago; it is what was said to the trade unions and it has not changed [since then]. The processing of the bankruptcy will continue its process now.”
Pesca Chile offices have been taken over by a reorganization trust headed by Herman Chadwick. Assets have been frozen and financial and accounting records have been seized. The process now continues in Punto Arenas, where a stock-taking mission will determine the fate of Pesca Chile’s ships and equipment.
Over the next two days, the 600 Pesca Chile employees will receive their letters of dismissal.
Meanwhile, the Pescanova uncertainty has spread to Argentina, where a subsidiary Argenova has closed one of its three branches, according to FIS.
Undercurrent News reports that Pesca Chile’s bankruptcy is being welcomed by salmon-farming companies in the region as the assets could go on sale soon.
Pescanova is a Spanish fishing company and Europe’s third-largest seafood company. Its insolvency proceedings are rocking the industry.
