According to Avramar sources, they explain that despite slimming down its structure, it is expected to maintaining the same level of production

Avramar refinances its business in Spain and closes marine farms

SPAIN
Wednesday, May 01, 2024, 06:50 (GMT + 9)

The following is an excerpt from an article published by El Economista:

• Its owners, Amerra and Mubadala, propose selling the Greek part without the Spanish part
• The Spanish division recorded extraordinary losses of 20 million in 2023
• With its restructuring it eliminates a center in Burriana

The inflationary crisis has hit the entire food chain hard, but it has had a particularly traumatic impact on one of the most expensive food products in the shopping basket, fish. The largest aquaculture producer in the entire Mediterranean, Avramar, based in Valencia and which belongs to the American investment fund Amerra and the Mubadala fund of Abu Dhabi, has been trapped by this drop in sales to which the largest costs due to increases in raw materials, such as feed for their nurseries and marine farms.

The group concentrates its facilities in Greece, which accounts for close to 70% of its production, and in Spain, where it is one of the main producers of sea bass, sea bream and croaker. Difficulties that have led its owners to shuffle and test the sale of the business it maintains in Greece, where it ranges from fish feed manufacturing plants to the entire industrial chain, from fingerling nurseries to fish processing plants. for sale. A divestment that, however, is not being considered for its subsidiaries in Spain at the moment, according to Avramar sources.

In fact, the division that brings together its activity in Spain, Avramar Ibérica, has taken a breath after reaching an agreement with the majority of creditor banks to refinance its debt and receive approval for its restructuring plan. The firm already signed that agreement last February and the only drawback is its judicial approval. A process that the food firm considers will be closed without incident since the entities that have been left out represent less than 3.5% of the total liabilities.

The financial agreement includes the maintenance of all working capital lines, for an amount of 39.5 million euros, for the Avramar Ibérica division for a period of 4 years, which will be renewed automatically in the first two years. In addition, the payment terms of a large part of its loans are lengthened, including a 12-month grace period. Some measures with which Avramar considers that it will have "sufficient operating cash to carry out its activity on a regular basis during the coming years", according to its report.

The agreement also involves increasing the banks' guarantees, for which real estate and boats with an appraisal value of 13.7 million euros, 51% of the shares of Avramar Ibérica and the credit rights generated by the sale of biomass produced in Spain.

Closing in Burriana

The restructuring plan aims to optimize and maximize profitability, according to Avramar sources, who explain that despite slimming its structure, with the improvements it is expected to continue maintaining the same level of production, around 12,000 tons per year in Spain. Within that plan, the closure of marine farms, facilities for fattening fish in the sea, has already been addressed. Thus Avramar has closed Acuícola Marina, located in Burriana (Castellón). It has also formalized the cancellation of the agreements it had for supply with marine farms outside the group.[continued...]

Author: Ángel C. Álvarez | Read the full article by clicking the link here

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