In my first article I presented some facts and figures on the historical development of fish farms from cottage industry to a major contributor Continue reading
Tag Archives: fish farms
Ewan Kennedy: The impacts of fish farming
Rather than offering a lengthy response to the comments posted on my last article I thought it would be helpful to write a follow-up Continue reading
Scotland’s fish farming: concept to reality
Fish farming in Scotland started in the late 1960s and soon came to be encouraged by central and local government Continue reading
CEO leaving for Australia as environmental agency names and shames Argyll fish farms
It has just been announced (29th August 2011) that the Scottish Continue reading
River Etive to the Corryvreckan: fancy some open water swimming?
A group of members of Mid Argyll Tri & Cycle Club co-ordinate regular open water swimming sessions Continue reading
Scottish Tax Payers ‘Pay-into’ Norwegian Owned Fish Farm Profits
Investigations into the shot seal incident, reported by a family of four holidaying Continue reading
Plea for Government action as holiday family finds shot seal
Like many people visiting the west coast of Scotland, a family of four Continue reading
Very good news for Lighthouse Caledonia
Northern Link – a private equity investor advised by Edinburgh-based First Mercantile Partners – has just announced that it has taken a holding of 77 million of the 150 million Norwegian Kroner that Lighthouse Caledonia has now raised in the Private Placement of Shares it conducted at the end of last week. This has to be approved by Lighthouse Caledonia’s Board of Directors and its EGM on 3rd March and must be certain to gain that approval.
Northern Link would then hold more than 50% of the shares in Lighthouse Caledonia and says that when the current acquisition is approved it will be prepared to make a bid for the remaining shares, under the relevant section of the Norwegian Securities Trading Act.
First Mercantile, who have advised Northern Link in this, have a lot of experience in direct investment, in turning failing companies around and in public stock exchange listings.
In the announcement of this development, James J Mullins from First Mercantile says: ‘We look forward to this major strategic investment in Lighthouse Caledonia and are optimistic about the company’s position in the Scottish salmon market. This transaction provides an opportunity for Lighthouse Caledoniato increase its working capital and to reduce and restructure its outstanding debt. This investment is a clear indicator of our confidencein the company and its potential, and we look forward to working with management and existing shareholders in helping to expand Lighthouse Caledonia’s markets and opportunities for growth’.
With Lighthouse Caledonia’s operation in Argyll a major part of the company’s business and supporting its role as an established employer in the area, this announcement is good news all round.
Lighthouse Caledonia announces asset sales and refinancing
Lighthouse Caledonia has announced today (10th February) a series of actions designed to address what it describes as its ‘constrained liquidity situation’. It is:
- selling assets and biomass
- agreeing refinancing of tis long term debt with its major lender
- converting its accrued short term debt into long term debt with the agreement of a major creditor
- agreeing the writing down of a proportion of its accrued short term debt with the same creditor
The immediate concern in Argyll, host to several of the Lighthouse Caledonia businesses, is with the proposed sale of assets and biomass – so here are the relevant deails announced by the company. It proposes to:
- sell its Loch Seaforth site to Marine Harvest for £2.35million gross
- sell its Loch Eriboll site to Scottish Seafarms for £0.5million gross
The sale of these assets will reduce the company’s harvest volume from 25,500 gwt to 23,500 gwt for 2009.
The company then proposes to sell biomass at Ardyne and Strone to EWOS for £2million gross. This is proposed under the following terms described by Lighthouse Caledonia:
- EWOS will purchase the biomass at a fair value, feeding the fish to harvest weight and covering the feed cost and mortality risk
- Lighthouse Caledonia will take the other associated costs and will buy the biomass back from EWOS at the point of harvest and at a pre-defined price.
The proposed refinancing arrangements depend upon a successful equity issue of 150million Norwegian Kroner. The Company is seeking to raise new equity of 150-200million Norwegian Kroner (NOK) through what it describes as ‘a private placement’ with existing shareholders and new investors.
The application period for this will be from today – 10th February – to 13th February 2009 at 18.00 hours Central European Time (CET) and the period may close earlier or be extended at the Company’s discretion. The subscription price will be NOK 0.10 per share and the minimum subscription amount in the private placement will be NOK 500,000.
Should this equity issue succeed, the agreed refinancing arrangements include:
- extending the maturing of its long term debt from 5 to 8 years
- reducing its long term loan from £20.6 million to £15.1 million through the sale of assets and through debt repayment with semi-annual instalments of £1.07 million – the first payment being due on 3rd March 2010
- adopting a new convenant structure described as having: ‘…minimum equity ratio of 35% and NIBD/EBITDA by Q4 2009 of max 4.5x based on EBITDA for the last 3 quarters in 2009 annualised’
In the restructuring of its short term debt the company has made the following arrangments with a major creditor:
- to write down £1million of accrued short term debt
- to convert £3.6million of accrued short term debt to a subordinated loan on the same terms as the restructured long-term loan facility from the main lender which is described above
The company’s announcement contains other regulatory and historical financial performance details but the above is a summary of the key actions it is proposing now to take.
Clearly what is now crucial for the company is the success of the equity issue open for subscription from today until 18.00 CET on Friday (13th February). As For Argyll has reported within the last few days, Lighthouse Caledonia has said that it will make an announcement on or before Monday 16th February. This announcment wll be dictated by the results of the equity issue. Matters wil now be resolved quickly one way or the other.
Impact on Loch Awe of Rainbow Trout escapees
There are two fish farms on Loch Awe in Argyll – one at the south end near Ford, the other in the Pass of Brander opposite the Cruachan Power Station. From time to time large numbers of rainbow trout escape from these farms, either by carelessness or accident. The presence of this non-indigenous species is not welcomed by most anglers on the loch. It has affected the resident population of wild brown trout.
Additionally, some large rainbow trout have recently entered the River Awe from a fish farm in Loch Etive. It is known that the large rainbows will eat salmon and trout fry. This is not good news for the regeneration of the loch. Of course most fish, given the opportunity, will eat other fish but usually on individual lochs a balance is reached. A sudden influx of large predators as in Loch Awe and the River Awe, upsets that balance.