A creditors’ composition agreement has been approved for Pescanova, and section six of  the insolvency proceedings (categorisation of the  insolvency) has not been opened, as  there is  a type of creditor whose  moratorium is less than three years and  whose debt  relief is below one third.

The composition proposal of Pescanova, S.A. has been approved with the vote in favour of  63.65% of the  liabilities calculable for these purposes. Thus, as the judgment of  Pontevedra Commercial Court No. 1 of May 23, 2014, legally approved the  composition  agreement, all effects of the  declaration of insolvency are removed  and  replaced by  those in the agreement, and the insolvency administration is concluded.

The judgment stated that was no reason  to open section six  (categorisation)  of the  insolvency proceedings, notwithstanding it should be open if the composition agreement is not fulfilled. The judge considered that the  amended composition proposal (the one definitively approved)  raises the amount of the claims treated individually, i.e., with no  debt relief and with a moratorium of one year, to €100,000, involving 336 creditors out  of 500, compared to the initial proposal’s provisions, which only did so for creditors with  claims of less than €1,000. Therefore, the judge considered that (without analyzing the  raison d`être or  material  fairness of this precept, as this did not correspond to him)  article 167.1 of the Insolvency Act was fully applicable, which states that section six will not be opened on agreeing for one type of creditor debt relief of less than a third or a  moratorium of less than three years, unless there is a breach of the agreement.