After canceling its plan Abanca will go to the expansion of Nueva Pescanova

 

SPAIN
Tuesday, January 26, 2021, 20:20 (GMT + 9)

With 88.40% of the shares after recently acquiring a 7.94% stake in Merrill Lynch-Bank of America

Abanca will attend the next voluntary capital increase of Nueva Pescanova, of which it is the majority shareholder, with 88.40% of the shares after recently acquiring 7.94% of the participation of Merrill Lynch-Bank of America, reported the financial institution in a statement.

The Nueva Pescanova board of directors announced last week the call to its partners and creditors to carry out a voluntary debt capitalization in order to ensure the future viability of the company and the fulfillment of its business plan.

This decision was produced as a result of the judgment of the Commercial Court 1 of Pontevedra that annulled the approval of the refinancing agreement of the company with Abanca and other creditors, considering that it was not adopted with the majorities required by law.

Abanca will thus capitalize 84% of Nueva Pescanova's structured debt it has. This occurs after the refinancing agreement was annulled by the court dated June 30, 2020, in which the conversion into equity of a large part of the debt of the company inherited after the Pescanova bankruptcy (known as Vieja Pescanova) , currently 643 million euros.

In 2017, it capitalized 35% of the debt of 1,000 million inherited from the bankruptcy of the old Pescanova. Nueva Pescanova obtained judicial approval of this refinancing agreement in August, which was challenged by Broadbill and other funds, as well as by the former Pescanova.

The judge explains in his resolution that as Abanca is a "person especially related" to Nueva Pescanova, his votes in favor of the refinancing agreement of the fishing multinational cannot be counted and, therefore, he considers that the necessary majorities for its approval.