Pescanova accused of cooking books
According to Europa Press, Joaquin Yvancos, the attorney who represents the group, is also accusing…According to Europa Press, Joaquin Yvancos, the attorney who represents the group, is also accusing the board of other crimes, such as the use of insider information in the stock market, as several companies sold their shares before the creditors' meeting called by Pescanova.
The crime of forging economic-financial information "in order to attract investors or depositors, placing any type of financial asset or obtaining financial gain by any means" is punishable with a sentence of up to four years, and six years if such action is "detrimental to the investor, depositor, acquirer of the financial assets or to the creditor."
The complainants argue that the National Securities Market Commission (CNMV) did not develop "a diligent activity, thorough monitoring with determination and could not promptly perceive the true situation of the company," and that it reacted "late, slowly and unwisely." Auditing firm BDO is also named in the suit, on the ground that its conduct was "unacceptable and unjustifiable."
Meanwhile, Pescanova is facing cash flow issues in five countries in which it operates: Argentina, France, Uruguay, Brazil and Chile, as well as tensions in the cash flow belonging to the firms Pescafina, Promarisco and Bajamar, the newspaper La Voz de Galicia reported. According to the data collected in a financial report of one the major creditors, the company may have a cash threshold for a period lasting "between 15 and 20 days."
