Pescanova owes the banks 3 billion euros, and it has nearly 50% of that in provisions. To be on the safe side, the banks will cover the remaining 50% of the fishing company's debt before the year ends.
This is the right decision, and it is in line with credit obligations that the Bank of Spain imposed on Pescanova, giving the company a full year term to deal with these kinds of situations.
Keeping in mind that Pescanova is worth nothing and that the creditor banks will have to resign themselves to a loan forgiveness strategy (the exact percentage is still being decided), the decision to provision 1.5 billion euros will be a hard blow, but will also allow the banks to capitalize debt, turn loans into stock shares and take control of Pescanova.