Deloitte named Pescanova administrator, debt pinned at almost €4bn

April 29, 2013, 9:04 am

Deloitte has been appointed as administrator for Pescanova's bankruptcy, as media reports say the Spanish company's debt is of at least €3.3 billion, and maybe close to €4bn.

Deloitte now has two months to prepare a report for the Spanish commercial court, while creditors have one month to file all their claims with Pescanova.

Reported to be at €1.5bn last year, Pescanova's debt is now said to be of at least €3.3bn, in addition to administration costs and supplier debt.

According to Spanish media, Pescanova is now saying its debt includes €1.85bn of external liabilities, in addition to €350 million of debt within its Spanish subsidiaries and €650-700m within consolidated foreign subsidiaries and €400m in bond debt.

To this several hundred millions must be added in administration costs and debt to suppliers, which would take the debt close to €4bn, sources told El Pais. 

Deloitte's appointment came just 24 hours after the Pontevedra court accepted Pescanova's bankruptcy filing but also decided to strip the board and the chairman and president, Manuel Fernandez de Sousa-Faro, of their duties.

Fernandez himself is under investigation by public prosecutors for possible insider trading. Between January and February, the chairman sold 7% of the group for €31.5m -- a sale that came only weeks before the company filed for insolvency proceedings, and that was only revealed a few days ago.

A court is also investigating two complaints from minority shareholders who accuse Pescanova's direction of fraud, said ABC.

Meanwhile the second largest shareholder in Pescanova, the Damm brewery group, has rounded its stake in the company from 6.183% to 6.2% as a result of a transaction carried out earlier this year.

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