With the final deadline for debt negotiations fast approaching, Spanish frozen fish company Pescanova look to have struck a deal with creditors to accept losses of 90% on loans.
The Spanish fishing company, whose former board members are under investigation for hiding more than €2 billion of debt, last week asked lenders to take nominal losses of as much as 97.5% as part of group restructuring.
Reuters have reported that Barcelona-based brewer Damm and investment firm Luxemport, who are Pescanova's main shareholders, have submitted a creditor-backed plan which if accepted by a Spanish court, would see creditor banks become majority shareholders of a new company to be called "Nueva Pescanova".
Creditor banks would own a 34.6% stake in the new company, while Damm and Luxemport would be the main industrial investors, owning a 30% stake under the consortium's proposal.
A previous consortium proposal that included private equity firm KKR and investment group Ergon Capital Partners has not gone ahead.
The insolvent Pescanova will be liquidated if it doesn’t agree to a restructuring deal in the coming days.
© 2014 - European Supermarket Magazine by Enda Dowling
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