Reuters: Hot Stocks: UPDATE 1-Spain's Pescanova files for insolvency

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UPDATE 1-Spain's Pescanova files for insolvency Mar 1st 2013, 13:05 Fri Mar 1, 2013 8:05am EST (Adds filing for insolvency, context) MADRID, March 1 (Reuters) - Spanish fishing firm Pescanova said on Friday it had filed for insolvency having failed to sell part of its salmon farming business, joining a growing list of companies struggling to stay afloat in a drawn-out recession. The company, based in the northwestern city of Pontevedra, now has up to four months to renegotiate its debt with creditors under Spanish law. Pescanova, which had debt worth 1.52 billion euros ($1.99 billion) at the end of September last year, struggled in the last months to make its investments into farmed crustaceans and fishes profitable. Its main shareholder - with 14.5 percent of the equity - is Manuel Fernandez de Sousa-Faro. He has also been the CEO of the company for more than 30 years. Spain's stock market regulator earlier suspended trading in Pescanova's shares after the company failed to release results before an end of February deadline. Pescanova said in a statement it had not posted results because it was waiting to close a deal to sell part of the salmon farming business and that it would have to restructure its debt if the deal was unsuccessful. Other Spanish companies, including real estate firm Reyal Urbis, the organiser of the Miss Spain beauty pageant and solar panels company Isofoton have gone to the wall in recent weeks as banks call in outstanding debt and toughen conditions with clients as part of a clean-up of the banking sector. Pescanova's share price has dropped 26 percent over the last year. It closed at 17.40 euros ($22.75) on Thursday. ($1 = 0.7649 euros) (Reporting by Julien Toyer and Robert Hetz; Editing by Clare Kane and Elaine Hardcastle) Link this Share this Digg this Email Reprints

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