No accord right now mentions debt forgiveness, said BCI General Manager Lionel Olavarria. (Photo: Stock File)

Bank will not waive AquaChile’s debt

CHILE
Thursday, June 11, 2009, 01:10 (GMT + 9)

Financial institutions have denied AquaChile the possibility of reducing a percentage of its liabilities, which altogether exceed USD 382 million. Meanwhile, 20 national salmon firms are expected to reach agreements with the bank sector on refinancing their debts.

According to the general manager of BCI Financial Consultant's offices, Lionel Olavarria, the forgiving of salmon firm debt was a topic that was not raised during talks.

“Refinancing is very complex and is not part of what the BCI can do. So far, no refinancing agreement has stipulated the waiving of debt,” he explained.

Other financial sector players share the same opinion as BCI.

According to a top executive at another bank, if part of the debt of AquaChile were forgiven, the other salmon firms that are negotiating their liabilities with the bank would look to reach similar agreements with their creditors, which would not be accepted by financial institutions.

The banks “do not want to open doors if they don’t know where they'll lead,” said a sector source to Diario Financiero.

Still, salmon sector agreements “are moving along well,” BCI’s general manager assured. However, some “ready for signing” agreements had to be reviewed because “they have attempted to generate similar conditions for debtors that are in very different situations,” he acknowledged.

Salmon firms Multiexport and Invertec Pesquera Mar de Chiloe (Invermar) are soon set to finalise their liabilities talks with their banks.

According to some projections, the technical aspects of the renegotiation, like interest rates and grace periods, have already been defined. The only pending issue is the review of the agreements’ legal aspects, which are being studied by attorneys representing the two firms.

Related articles:

- Bice Bank’s decision sparks unrest
- Five salmon firms begin credit talks with banks

By Analia Murias
editorial@fis.com
www.fis.com

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