Pescanova products. (Photo Credit: Pescanova)
Expectations as to Pescanova’s real debt
Monday, March 18, 2013, 01:00 (GMT + 9)
During a special session held last Thursday, 11 of the 12 members of the Board of Directors of the company Pescanova decided to offer more time to the BDO audit to determine the real value of the debt.
The directors agreed to "ratify the debt restructuring line," which would mean to extend the payment date of the liabilities coming due soon and those that Pescanova can not face, indicates the note sent to the National Securities Commission (CNMV).
"Having heard the report of the Audit Committee," the highest executive body of the Galician multinational firm could only accept the debt restructuring, the newspaper Faro de Vigo reported.
The 11 directors analyzed the information "provided" by the company and by BDO auditors on the discrepancy of the accounts that the firm acknowledges it has.
Recently, Pescanova chairperson, Manuel Fernández de Sousa, acknowledged the gap in the accounts, saying “discrepancies between our accounting process and the bank debt figures that could be significant."
Pescanova has total liabilities of EUR 1,500 million but this year the payment of EUR 203.3 million of the debt is due.
In addition, this week the CNMV decided to cancel Pescanova’s securities quotation on the Stock Exchange of Madrid.
The authority took this initiative because the debt figures handled by the Galician multinational firm do not match those of the creditor banks.
Meanwhile, the head of the Ministry of Agriculture, Food and Environment (Magrama), Miguel Arias Cañete, ensured he expects Pescanova recovers the economic balance “as soon as possible.”
In addition, it was also made clear that there was a need for the company not to alter "its expansion plans or its capture, manufacturing, sale and export possibilities."
Furthermore, the President of Xunta de Galicia, Alberto Núñez Feijoo, stated the importance of "having the necessary prudence and being interested in the preservation of work positions of this big Galician and Spanish company."
And the Minister for Rural and Marine Affairs, Rosa Quintana, expects the Spanish company "continues maintaining links with Galicia."
The official reiterated that the Xunta is willing to support the company from the institutional and economic viewpoints, the agency Europa Press reported.
- Pescanova trade on stock market cancelled again
By Analia Murias