Avramar refinances its business in Spain

Owners still considering selling its Greek business.

Seabass bream farm_shutterstock_2259620909
Credits: Shutterstock
May 1, 2024

The largest aquaculture producer in the Mediterranean, Avramar, which belongs to the American investment fund Amerra and the Mubadala fund of Abu Dhabi, has been trapped by the drop in sales and inflation. The group operates facilities in Greece, which accounts for around 70% of its production, and in Spain, where it is one of the main producers of seabass, seabream and meagre.

The difficulties have led its owners to consider selling the Greek business, which ranges from fish feed manufacturing plants to fish farms and fish processing plants, according to local news. However, Avramar does not contemplate this divestment for its subsidiaries in Spain. The Spanish division, Avramar Ibérica, reached an agreement with the majority of creditor banks to refinance its debt and receive approval for its restructuring plan.

The financial agreement includes the maintenance of all working capital lines, for an amount of EUR 39.5 million, for Avramar Ibérica for 4 years, which will be renewed automatically in the first two years. In addition, the payment terms of a large part of its loans are lengthened, including a 12-month grace period. Some measures with which Avramar considers that it will have "sufficient operating cash to carry out its activity on a regular basis during the coming years", according to its report.

With the restructuring plan, Avramar hopes that despite slimming down its structure, the same level of production will be maintained in Spain, around 12,000 tons per year. Within this plan, it has already been decided to close Acuícola Marina, located in Burriana (Castellón).

After these measures, the Spanish division of Avramar maintains two hatcheries in Castellón and Murcia, in addition to three large grow-out farms on the coast of Calp, El Campello and Vila Joiosa.