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AquaChile Begin Refinancing of US$380 million Debt
According to a report by Analia Murias of FIS, had the company not closed a deal with the bank this week, their executives would have been forced to file for bankruptcy or for a motion in favour of a suspension of payments to avoid this fate and - eventually - garner protection for 90 days.
Top management of the three banks met Wednesday, to present a final decision on the debt renegotiation proposal that AquaChile had sent them late last week, reports FIS.
According to sources close to the negotiation, bank executives Fernando Canes and Luis Enrique Yarur – general manager of Bank of Chile and BCI president, respectively – instructed their lawyers of the necessity to close the refinancing process, which had gone on too long, El Mercurio reports.
AquaChile will have to submit 100 per cent of its shares as collateral, and will not be able to lift the pledge once the new General Fishing and Aquaculture Law allows salmon firms to use aquaculture concessions as collateral. In addition, it would have to accept a fixed LIBOR (London Interbank Offered Rate) rate, plus 2.5 per cent for 10 years.
TheFishSite News Desk
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