Invertec secures restructuring deal

Chilean salmon farming company Invertec Pesquera Mar de Chiloe sealed an agreement on December 30 with local financial institutes, which will allow it to restructure its liabilities and improve its management.

Invertec signed a contract in which it recognises the debt it holds with 12 financial entities worth US$153 million.

The figure could rise to US$166 million due to asset capitalisation.

Invertec is one of the main Chilean salmon producers. It registered losses worth US$26 million during the first nine months of 2009, but it was a better result from its performance in the same period of 2008 when the company lost US$51 million.

Chile's salmon industry has had a difficult year 2009. The economic crisis and losses caused by the impact of infectious salmon anaemia (ISA) virus left sector companies with no choice but to renegotiate their debts with local banks. In addition, these agreements will assist them in acceding to new lines of credit.

The agreement indicates that Invertec will pay the debt of its subsidiary by taking on its debt with its creditor banks. This situation was the reason for revisions and ample studies on the part of financial entities, which delayed the operation.