Pescanova admits discrepancy between debt on its books and creditors' claims

Spanish frozen food manufacturer Pescanova on Tuesday acknowledged that the debt figures the company has at hand do not correspond with those claimed by its creditors.

In a statement to the National Securities Commission (CNMV), Pescanova said it had found “possibly significant discrepancies” between the levels of its bank debt on its books and those of its creditors, adding that it is revising its accounts.

At the start of this month, Pescanova, the manufacturer of a leading brand of seafood of the same name, filed for pre-receivership, which under Spanish bankruptcy legislation allows a company a period of three months to renegotiate its debt with creditors. Pescanova had debt of 152 million euros as of the end of September of last year, eight times its annual operating profit.

Since it announced its petition for pre-receivership, the company’s shares have plunged, with the company losing close to two-thirds of its market capitalization since the start of the year. Trading in its shares was suspended on Tuesday after a further 20-percent fall. The CNMV late Monday said that it would open a probe into possible insider trading in Pescanova’s shares as is normally the case of wild fluctuations in share prices.

Regarding Pescanova’s books, CNMV Chairwoman Elvira Rodríguez said: “The only thing we are asking is that the accounts are presented in accordance with the CNMV’s regulations. You have to comply with the obligations regarding information and when they are not complied with we open an investigation, and if we detect an infraction, we proceed.”

Separately, Agriculture, Food and Environment Minister Miguel Ángel Cañete said he was confident Pescanova would find a solution to what he described as a “temporary problem.”