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Nova Austral and its board of directors reported that despite efforts with its creditors to develop a restructuring plan, the company finally stated that a solution was not reached.
Nova Austral has had severe financial problems since the beginning of this year. These problems have led the company to close the joint venture with Trusal (a subsidiary of Salmones Austral) and, consequently, to the instability of part of the business. Furthermore, the company faced non-compliance with environmental regulations in certain centers, leading to a process that could result in permit revocation through environmental qualification resolutions. However, the situation continues in a complex process, and the outcome seems increasingly worse.
As Salmon Expert reported, an essential fact sent to the Oslo Stock Exchange caused them to announce the update. “We regret to inform you that no consensual solution has been reached, neither for a securitization of the bonds as foreseen in the call, nor for the voluntary sale by the secured creditors of the company’s shares,” the medium reported.
They stated their commitment to providing updates on the upcoming steps as they become available. As Salmon Expert explained: “The company will take whatever measures it deems necessary to protect its operations, workers, and the environment and is considering all available options. It includes possible judicial reorganization.”
In late May, Nova Austral reported that it posted an EBITDA after adjustments in red. Moreover, the environmental authorities have announced that some concessions will not be renewed due to malpractices.
More doubts and fewer answers in a process that is becoming complex and points to quite negative scenarios.
About Nova Austral
Nova Austral is a major player in the production and processing of salmon within the Chilean salmon industry. The company has been operating in the Magallanes and Chilean Antarctica region for more than 15 years. Altor Fund III and Bain Capital control the ownership of the company.
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