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Pescanova Seen Seeking to Extend Restructuring Vote Deadline

Pescanova SA (PVA) is seeking to extend a deadline for a creditor vote on the Spanish fishing company’s restructuring, according to a person familiar with the situation.

The request follows meetings between the company and its banks that ended without agreement last week, said two other people with knowledge of the matter, who asked not to be identified because they’re not authorized to speak about it.

A bankruptcy court judge may rule today whether to delay voting until April 30 in response to a request from the Spanish fishing company that cited a delay in producing an English language version of debt plans. The court had given until April 15 for approval of proposals from shareholders Damm SA (DMM), the Spanish brewer, and Luxempart SA.

The operator of fish farms and processing plants from Spain to Chile, as well as more than 90 ships, needs to win agreement from more than 50 percent of creditors to avoid entering a liquidation process. Some of Pescanova’s creditor banks don’t back the restructuring plan from shareholders and instead they presented an alternative offer this month, which would give them control of the company if it enters liquidation.

Last week representatives of Pescanova and Damm held talks with lenders Banco Bilbao Vizcaya Argentaria SA, Banco Popular Espanol SA, Banco Sabadell SA, CaixaBank SA, NCG Banco SA and Unione di Banche Italiane SCPA.

The lenders want to retain 1 billion euros ($1.4 billion) of debt in the restructured company, rather than the 700 million euros proposed by shareholders. Under the banks’ proposal they would inject 115 million euros into the company and guarantee 1 billion euros of debt.

Pontevedra, Galicia-based Pescanova had 3.25 billion euros of net debt at the end of 2012, according to a Dec. 10 statement from court-appointed administrator Deloitte LLP.

The company’s 160 million euros of 8.75 percent notes due 2019 were quoted at 8.3 cents on the euro on April 11, Bloomberg bond prices show. The notes traded at 16 cents on March 6.

Spanish newspaper Atlantico reported the extension request April 13. A Pescanova official and a spokeswoman for Damm in Barcelona, who both asked not to be identified citing company policy, declined to comment on the restructuring.

To contact the reporter on this story: Katie Linsell in Madrid at klinsell@bloomberg.net

To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net Michael Shanahan

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