Greek sea bass and bream farmer Dias Aquaculture announced on Thursday it will apply for voluntary bankruptcy.
The announcement comes after the company’s application to enter into conciliation procedure under Chapter 99 of the bankruptcy law was declined.
“Driven by its belief in the future of Dias, the board of directors of Dias still wishes to reach a restructuring settlement with the banks and other creditors, which is the only viable and long-term solution to the current financial impasse faced by Dias,” the company said. “In order to facilitate such discussions and the have the benefit of creditor protection, the board of directors of Dias has decided to apply for voluntary bankruptcy due to threatened inability to cover its debts, which will allow Dias to be placed under immediate protective measures.”
Entering voluntary bankruptcy does not prevent Dias from being able to reach an agreement with its creditors and therefore withdraw from bankruptcy.
