Here are Paul’s comments on Fifax’s financing packages.
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Near-term financing did not expand into a more comprehensive solution.
The administrator appointed in the corporate restructuring process of FIFAX Oyj (“Fifax” or the “Company”) has filed an application for the discontinuation of the restructuring process. In the administrator’s view, there are no prerequisites for continuing the restructuring, as the Company has not succeeded in securing sufficient financing to implement the restructuring process. The Company’s Board of Directors agrees with the administrator’s assessment.
Fifax’s Board of Directors has decided to surrender the Company’s assets to bankruptcy and will file a bankruptcy petition with the District Court of Åland without delay. The majority of the Company’s creditors support the procedure.
It is in the interest of Fifax, its creditors, and owners that the cultivated fish stock can be secured. The Company cooperates with authorities and the bankruptcy trustee and assists them in finding the best possible solution.
Making money with this has certainly not been easy for those who invested in it. At least Inderes’ recommendation has consistently been sell/reduce throughout its relatively short stock market journey.
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Here are Kaisa’s comments on Fifax’s bankruptcy.
Fifax’s continued operations are uncertain, as the company announced on Thursday that it would file for bankruptcy. The necessary additional capital has not been secured, as a result of which the corporate restructuring is failing. In our assessment, the situation from the shareholders’ perspective is very difficult, and we consider the risk of losing capital to be very likely.
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And the last one turns out the lights, it’s a shame that this company’s true potential was never realized when a virus destroyed the fish stock years ago.
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In these cases, one can, of course, use their own judgment or directly believe what the management has tried to market to investors in a difficult spot.
Indeed, there was a lot written about these closed-loop problems already about four years ago, at the time of the listing. Problems have certainly existed, but quite a few of them have purely been related to the cultivation process, with which other companies have also had many problems and made significant losses. Less so with salmon.
It’s always a shame if a company goes bankrupt. Hopefully, everyone who jumped on board was aware of the risks, however.
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It’s unfortunate that it came to this. Hopefully, a successor can still be found for the facility – although the window for this is quite short considering the preservation of the fish stock.
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