Pescanova products. (Photo: Pescanova)
SPAIN
Friday, January 10, 2014, 23:40 (GMT + 9)
The Galician multinational Pescanova has three proposals for its recapitalization: one from Damm, Luxempart, KKR and Ergon Capital Partners; another from Centerbridge and Bluecrest investment funds, and a third one from the major domestic creditor banks.
A few days ago, it was revealed that if Damm failed to present, a "revised" and "more balanced" offer to Pescanova in the next two weeks, Centerbridge and Bluecrest could 'win the battle'.
Now creditors also fight for the control of the firm, for which they have proposed to inject USD 250 million and lower the cut off to 60 per cent, La Voz de Galicia reported.
Sources familiar with the negotiations said that "work is been carried out" on the details of the proposal, but it would be the national creditor banks (Sabadell, Popular, NCG Banco, Bankia, CaixaBank, Santander and BBVA) which would provide the funds.
It is expected that next week the three stakeholders will adjust their proposals for them to be submitted to KPMG, the creditor banks’ consultant.
Meanwhile, the CC.OO. Union, with majority representation on Pescanova’s council expressed "preference" for Damm’s bid.
For the Union, this group has a "long-term industrial project," while the alternative posed by Centerbridge and Bluecrest funds could aim at "seeking profit", the agency Europa Press informed.
CC.OO.’s Head of Supply, Francisco Vilar, pointed out that although workers "don’t know what is being cooked on the negotiation table" between creditor banks and Pescanova, "they prefer an industrial partner," such as Damm.
He explained that the funds "may make further cash injection to take short-term profitability, with no intention of continuity, which in the end is profiteering."
Centerbridge and Bluecrest propose a capital injection of up to EUR 300 million , that is to say, EUR 50 million more than Damm’s proposal, with a remission of debt between 70 per cent and 80 per cent.
Damm and Luxempart, KKR and Ergon Capital funds proposed an 85 per cent, which would ‘forgive’ Pescanova EUR 3,000 million.