The Danish government announced Oct. 1 it would take over Eik Banki after the Faroese bank went into insolvency.
The news has derailed Faroe Seafood’s plans to renegotiate its DKK 475 million (€64 million/ $88 million) debt, as Eik Banki was one of its major creditors, and debt negotiations have been put on hold, Jacobsen said.
Eik Banki is a major shareholder of Faroe Seafood; as of 2008, it owned 48.5 percent of the company through its P/F Notio Framtaksfelag fund.
“Eik’s collapse happened just as Faroe Seafood’s board was about to start talks with the bank,” one source close to the situation told IntraFish.
