1. COMPANY DESCRIPTION
Nueva Pescanova is a fishing company based in Redondela (Pontevedra), Spain. From the Port of Vigo, where it has its base of operations, the group operates in more than 20 countries. It has approximately 10,000 employees around the world and it is currently the 1st fishing company in Spain, 5th in Europe, and one of the largest groups in the world fishing industry.
The group consists of more than 160 companies of subsidiaries and other societies, investments and strategic unions or joint ventures . In Annex 1 we can find an example of the holding previous to the situation described in this report .
Founded in June 1960 by a group of Galician entrepreneurs, the old Pescanova became worldwide known by its revolutionary…show more content… goes public. 24% of ownership will remain, both directly and through different companies, in the hands of its omnipresent leader, and that will allow him to retain control of the Board of Directors for more than a decade and appoint family and friends to occupy key positions in the company.
Nowadays, Nueva Pescanova has a fleet of over 100 vessels, plants dedicated to aquaculture and 30 processing plants; it commercializes products derived from more than 70 marine species, has 16 commercial brands of its own and it is a leader in the market of natural fish and shellfish; furthermore, it is present in some European markets with other ranges of deep-frozen foods such as vegetables, pizza and pre-cooked…show more content… According to that report, and as the the judicial investigation of the cause supports, Pescanova had a net financial debt of €3,281 million (not of €1,522 million as reported by the company at the end of 2012) and a hole in its net worth of €927 million (technical bankruptcy); Pescanova had almost three times the debt recognized and, where the company claimed to have millionaire assets, it actually had a huge negative book value.
Technically, this debt was the reason for the voluntary bankruptcy statement, together with the treasury needs that banks conditioned to refinance to the change of the managers of the company. The announcement caught many investors by surprise and Pescanova's stock price dropped.
The report stated that the accounts have been altered for years and the Management Board had created the system by which the red numbers have been masked in a large-scale