Nova Austral rescue plan delayed for fifth time

A decision on the future of the large Chilean salmon farmer Nova Austral has been pushed back yet again.

Shareholders were due to vote on a rescue package in the form of a new agreement yesterday, but creditors decided they needed more time to consider what is described as a Revised Organisation Proposal. A decision had been expected, but it was delayed for the fifth time since the summer.

A new meeting will now take place on 21 November, according to a message posted on the Oslo Stock Exchange.

Nova Austral, which farms in southern Chile, is said to owe more than US $500m (ÂŁ409m). The company employs 800 people directly and supports some 2,000 indirect jobs.

The company has blamed its problems on a series of “exceptional situations”, some of which were outside its control.

Nova Austral presented its first draft restructuring plan on 1 August and a series of delays and revisions have followed since.

The main terms of the revised agreement comprise seven recommendations. Among them is a proposal that all outstanding amounts under the existing secured bonds of the company will be discharged in full.

Credits under the existing secured revolving credit facilities of the company will be divided into two tranches, the “revolving credit tranche” and the “subordinated tranche”.

Other terms propose that credits under the existing secured revolving credit facilities of the company will be divided into two tranches, the “revolving credit tranche” and the “subordinated tranche”.

It is also suggested the amounts under the revolving credit tranche would be further divided into two other tranches, a “tranche A” in the amount of US $25m (ÂŁ20.5m) and a “contingent tranche” in the amount of US $30m (ÂŁ24.6m).

 

 

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