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Spain's Pescanova to get 55 mln euro lifeline from banks
May 13, 2013 / 7:26 PM / 4 years ago

Spain's Pescanova to get 55 mln euro lifeline from banks

MADRID, May 13 (Reuters) - Troubled Spanish fishing company Pescanova, which filed for insolvency in April, is set to be granted a 55 million euro ($71.4 million) loan from its bank creditors to keep operations going, two sources familiar with the situation said.

“It’s been agreed that Pescanova will get 55 million euros in financing, although the deal has not been definitively signed yet,” said one of the sources, on condition of anonymity.

A spokesman for Pescanova declined to comment.

The two sources added that Royal Bank of Scotland, one of Pescanova’s creditors, is not participating in the new loan, though other existing bank lenders - principally Spanish banks - are.

Mishaps at a fish farm in Portugal were in part behind the problems at debt-laden Pescanova, though its insolvency has since revealed other problems and the company is being investigated for possible market abuse.

Pescanova’s insolvency filing mentioned debts of 1.5 billion euros but financial sources have said that total debt is probably more than double that amount. ($1 = 0.7703 euros) (Reporting by Andres Gonzalez, Writing by Sarah White; Editing by Richard Chang)

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