Pescanova's plant in Mira. (Photo: Pescanova)
PORTUGAL
Friday, August 29, 2014, 03:10 (GMT + 9)
The creditor banks of the Portuguese fish farm belonging to Pescanova in Mira finally desisted from recovering EUR 100 million owed by the company through the exercise of their right to sell the assets.
Creditor banks of the macro-plant have now agreed to negotiate with Deloitte the terms of a refinancing process that may need an injection of between EUR 40 million and further EUR 50 million.
The banks had ruled out contributing more money to Acuinova Actividades Piscícolas, a company that was considered practically unfeasible due to the high accident rate and low production, the newspaper La Voz de Galicia informed.
The banks’ idea was to run the debt and liquidate the subsidiary of the Galician multinational firm Pescanova. They could do this because to finance the construction of the macro-plant a project finance was chosen, according to which the only guarantee of the banks are the assets and shares of the company itself, so they can run the guarantees when deemed appropriate.
But as Pricewaterhouse Coopers (PwC), who was in charge of finding a buyer, did not succeed in its mission, the banks have now agreed to negotiate the refinancing process and avoid closing the aquaculture facility.
"In this way more possibilities are guaranteed to recover their money than by letting it die,” sources related to the negotiations stated.
Pescanova received EUR 58.7 million in aid from the Portuguese Government.
The macro-plant in Mira, which cost about EUR 200 million to Pescanova, in 2010 produced about 2,880 tonnes of turbot; in 2011, production amounted to 3,931 tonnes; and in 2012, 4,397 tonnes of the species was produced.
According to the economic and financial report by Deloitte, the fish farm’s debt is held by the main Portuguese banks: Banco Caixa Geral, BPI, BCP and Banco Espírito Santo.
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