The main creditor bank for embattled Spanish fishing company Pescanova does not approve of the offer of creditors' agreement that Pescanova submitted in bankruptcy court, so the threat of the liquidation still hangs over the fishing giant.
Pescanova has been embroiled in troubles for more than a year after declining to present to Spanish regulators its annual accounts. Subsequent investigations revealed discrepancies between the company's accounting and its debts, which led to the company filing for bankruptcy and replacement of its board of directors and president.
After Pescanova presented its offer of creditors' agreement to settle the company's debt and possibly emerge from bankruptcy, the National Commission of Stock Market (CNMV in Spanish), the Spanish financial regulatory agency, published a communication requesting the correction of certain formal aspects, giving the company three days to comply. It was believed that the company would include some modifications to adapt to the banking requests, but Spanish media published that financial sources showed their discomfort with the offer submitted this week, and that the banks are thinking about acquiring the company in liquidation.
The main cause of the disagreement is the recovery of the debt, estimated in USD 965.58 million (EUR 700 million) in the agreement, whereas the creditor banks claim they are actually trying to recover USD 1.28 billion (EUR 1 billion).
According to the regional newspaper Faro of Vigo, the bank said that even if Pescanova should enter into liquidation, the company's continuity would be insured.
According to the agency Europa Press the creditor bank is contemplating an intermediate solution that would avoid the destruction of the business network, keep the industrial activity and assign a third party to assume the debtor's position and relaunch the company.
The creditor bank had a meeting last week to analyze the new offer of agreement and the modifications, but with the offer of creditors' agreement presented already before the court there is no possibility of introducing new changes before the 14 April deadline for adhesions to the offer. If in the end the agreement is not endorsed by at least 51 percent of the company's creditors, Pescanova would enter into a process of liquidation.
Pescanova has been embroiled in troubles for more than a year after declining to present to Spanish regulators its annual accounts. Subsequent investigations revealed discrepancies between the company's accounting and its debts, which led to the company filing for bankruptcy and replacement of its board of directors and president.
After Pescanova presented its offer of creditors' agreement to settle the company's debt and possibly emerge from bankruptcy, the National Commission of Stock Market (CNMV in Spanish), the Spanish financial regulatory agency, published a communication requesting the correction of certain formal aspects, giving the company three days to comply. It was believed that the company would include some modifications to adapt to the banking requests, but Spanish media published that financial sources showed their discomfort with the offer submitted this week, and that the banks are thinking about acquiring the company in liquidation.
The main cause of the disagreement is the recovery of the debt, estimated in USD 965.58 million (EUR 700 million) in the agreement, whereas the creditor banks claim they are actually trying to recover USD 1.28 billion (EUR 1 billion).
According to the regional newspaper Faro of Vigo, the bank said that even if Pescanova should enter into liquidation, the company's continuity would be insured.
According to the agency Europa Press the creditor bank is contemplating an intermediate solution that would avoid the destruction of the business network, keep the industrial activity and assign a third party to assume the debtor's position and relaunch the company.
The creditor bank had a meeting last week to analyze the new offer of agreement and the modifications, but with the offer of creditors' agreement presented already before the court there is no possibility of introducing new changes before the 14 April deadline for adhesions to the offer. If in the end the agreement is not endorsed by at least 51 percent of the company's creditors, Pescanova would enter into a process of liquidation.
