Canadian company Cooke Aquaculture has signed a new Memorandum of Understanding to acquire Avramar Greece's debt after Aqua Bridge withdrew from a previous agreement.
Banks and Cooke Aquaculture, based in Canada, have established a new Memorandum of Understanding (MoU) aimed at acquiring the debt associated with Avramar Greece. This decision comes after Aqua Bridge's withdrawal from a previous agreement, which had fueled speculation about the future of Avramar’s restructuring efforts. The new arrangement stipulates a purchase price of 200 million euros for the loans, anticipated to be paid over the next four months. Additionally, Cooke has pledged to issue the necessary letter of guarantee immediately, highlighting its commitment to finalize this transaction.
The recent developments mark a pivotal moment in Avramar Greece’s prolonged restructuring process, which has been ongoing for 18 months since the banks initiated the competitive bidding process. With Avramar's total debt estimated at around 410 million euros, the banks are projected to recover 49% of this amount through the new agreement. This recovery rate is perceived as favorable given the context and challenges in the industry.
Moreover, the circumstances surrounding Aqua Bridge's withdrawal shed light on the complex dynamics of corporate acquisitions and restructuring, particularly in the aquaculture sector. The choice of Cooke Aquaculture indicates a strategic pivot towards a more stable partnership in pursuing Avramar's recovery phase, as the former's immediate action underscores a proactive approach to addressing the financial challenges that have plagued Avramar Greece for an extended period.
