The owners of embattled salmon farmer Nova Austral are scrambling to stave off the threat of insolvency, but executives at the company and industry members paint a bleak picture.

Despite Nova Austral recording improved harvests and sales volumes in the first quarter of 2023 compared with the same period last year, the company said "there is a high degree of risk that a consensual restructuring may not be completed."

"If a consensual restructuring is not achieved, the company may have to initiate judicial restructuring or insolvency proceedings," it said.