Leading creditor banks were waiting on Pescanova at the end of March to provide details of its 2012 accounts before beginning talks aimed at renegotiating debts and saving the giant Spanish fishery and frozen foods group. One of the country’s most admired companies, Pescanova shocked the industry by filing for bankruptcy protection at the start of the month after running up debts that market analysts estimate could be between EUR 2 billion and EUR 2.5bn.
The group, which has more than 10,000 employees and some 100 subsidiaries around the world, admitted there were “significant discrepancies” with its accounts, just minutes after its shares were suspended in mid March. This followed nearly two weeks of wild fluctuations and rumours on the stock market following its failure to present a financial report for 2012. Filing the protection proceedings gives Pescanova four months to sort out is finances. The drastic move was taken after at least two board members refused to approve the accounts. The group is run by CEO and president, Manuel Fernández de Sousa, the son of one of its founders, although his own personal stake has been halved to 14% over the past two years. Banks are reported to be in favour of a change of management, with the retirement of Fernandez Sousa or reducing his powers, while allowing the entry of new investors into the group.
Market analysts have suggested the group’s financial problems stem from investing too heavily in fish farms, coinciding with the start of the economic crisis. Although an icon in the Spanish food market, 57% of the group’s turnover is from outside Spain.