Nova Austral makes new bid to sort out finances
Financially troubled Chilean salmon farmer Nova Austral has presented a new proposal for a judicial reorganisation which it believes will be more acceptable to creditors who have rejected previous arrangements.
Earlier this year Nova Austral, which owes US $560 million, presented a plan to a Chilean court which would have converted the debt into shares, effectively handing ownership to the company’s bondholders.
But the proposal, which would have given Norwegian bank DNB five shares for every dollar of debt and other bondholders just one share per dollar, was rejected.
Last week, Nova Austral put forward two new options to creditors, which include selling the company.
Option 1 includes the possibility of write-offs of 100% or 50% of the debt respectively. In the first instance, the company will give a preferential right to those bondholders who intend to participate in the financing of working capital, and in case 2 there will be a rescheduling of debt repayments so they are made in five annual instalments, the first of which must be paid on September 30, 2024, without accruing interest.
In Option 2, 100% of the debts of the Financial Secured Creditors will be rescheduled and paid in a single instalment on September 30, 2024, or on the date on which the shares have been sold, whichever occurs first, and will not accrue any interest.
If the Secured Creditors are restructured in accordance with all the terms of the first option, Nova Austral will proceed to request financing of US $23m for the continuity of its salmon farming operations in the Magallanes Region.
If the Secured Creditors are restructured under the terms of the second option, Nova Austral will seek up to $20m to finance its operations in the short and medium term and mainly to capitalise prompt payment of debts.