China Fishery files for bankruptcy in New York
Beleaguered China Fishery Group, along with more than 15
affiliates, has filed for Chapter 11 bankruptcy protection in New York.
Restructuring proceedings have also begun in Peru, the US, and the British
Virgin Islands.
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Claire Huang
02 July 2016
Beleaguered China Fishery Group, along with more than 15 affiliates, has filed for Chapter 11 bankruptcy protection in New York. Restructuring proceedings have also begun in Peru, the US, and the British Virgin Islands.
According to a Wall Street Journal (WSJ) report, four other affiliates, including Pacific Andes Resources Development - which is also listed on the Singapore Exchange (SGX) - filed for Chapter 15. This is the part of the bankruptcy code covering international insolvencies.
By filing for bankruptcy in New York, the company will receive the benefits of US bankruptcy law, including the so-called automatic stay preventing bondholders and other creditors from seizing its assets.
The bankruptcy filing is intended to stop a forced sale of China Fishery's assets at fire-sale prices, according to court papers, WSJ reported.
In a filing on SGX on Friday, China Fishery said restructuring proceedings have started for three key Peruvian subsidiaries in the South American country.
In a separate filing, Pacific Andes said it had made an application under the Singapore Companies Act to stay all actions and legal proceedings against it and four other affiliates.
Singapore's High Court has granted this stay for a period of six weeks until Aug 12 or until further court order.
Pacific Andes also said that, on Thursday, the High Court of Justice of the British Virgin Islands appointed Stuart McKellar as provisional liquidator of Richtown Development Ltd. This comes after Richtown (Pacific Andes' subsidiary) and creditor Sahara Investment Group gave consent to the appointment of joint provisional liquidators for Richtown.
China Fishery shares have been suspended from trading since the company's creditors succeeded in pushing for provisional liquidators to be appointed (they were discharged earlier this year after the company's lenders agreed to support the case for the company not to be wound up) in the wake of China Fishery's inability to pay its debts. The counter was last traded on Nov 25, 2015 at 7.6 Singapore cents.
Pacific Andes Resources shares have also been suspended from trading since last November and were last traded at 2.2 Singapore cents.