The troubles that Pescanova is going through are going to increase as the facts of their situation unfold during the next several days. The latest and most significant problem is that the Galician fishing company could have relied on a network of hidden, confusing companies for tax reasons. Pescanova kept these vehicles secret from the 80 companies that depend on the Pescanova group.
The CNMV has started to investigate the truth behind the evidence, which if confirmed would put Pescanova in a lot of trouble, question the doings of its management team and put it under legal scrutiny. A special council met today following a petition from the Catalán company Damm, which is the second leading shareholder in Pescanova with 6.18% of its capital. Damm CEO Demetrio Cerceller wanted more information on Pescanova, but also used the meeting to take over for Pescanova CEO and founder Manuel Fernández de Sousa. The move seems ironic. Given that Damm was a member of Pescanova?s board, wouldn?t he have known about the company?s troubles? Was he complicit in perpeutuating an unsustainable business?
Whatever happened, Pescanova ought to provide information to the BDO auditors as soon as possible so that its 2012 accounts can be fully reviewed. Although ten days have passed, the Pescanova crisis still resembles a similar situation that Italian food titan Parmalat underwent last year. The company almost closed its door after founder Calixto Tanz committed tax fraud. Pescanova might have one more line of credit left in the water, which it should exploit quickly in order to keep business and jobs in Galicia.
