Nova Austral rescue plan delayed again

The hoped-for financial rescue package for Nova Austral, one of Chile’s principal salmon farmers, has been delayed yet again.

Creditors met yesterday to discuss a reorganisation agreement that sets out a number of alternatives. They failed to reach an agreement, however, and in a brief Oslo Stock Exchange statement the company said the meeting was being further postponed until 9 November.

No further information was  released, but the lack of details suggests there is disagreement among  main creditors over what is being proposed. This is the fourth time a creditors’ meeting for the company has been postponed. A sale of the business is another possibility.

Nova Austral is heavily in debt which it says is due to a “series of factors and exceptional situations” that have prevented normal development.

Failure to agree a rescue plan would have a huge social impact on the area of southern Chile where the company operates.

The local mayor, José Gabriel Parada, said the company was a major part of the regional economy, adding that if the company is forced into bankruptcy many people will lose their jobs, as there is no alternative employment.

Nova Austral employs more than 800 people directly, and more than 2,000 in indirect activities such as transport and the servicing and support of its sites.

Last year three of Nova Austral’s environmental licences were revoked because the company significantly exceeded its allowed production limits.  The mayor suggested that this decision was partly responsible for the company’s current predicament.