China Fishery and affiliates’ plans draw objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Jan. 7 – China Fishery Group Ltd. (CFGL) and Pacific Andes Resources Development Ltd. (Bermuda) (PARD) and their affiliates’ Chapter 11 plans drew an objection from Region 2 U.S. trustee William K. Harrington, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Harrington said the plans impermissibly impose third-party releases on parties who have not “affirmatively and unambiguously” demonstrated their consent to grant those releases.

“The debtors are relying in part on the notion that the relief they are seeking is typical and ordinary, and that the third party-releases in the revised plans are consensual,” the U.S. trustee said in his objection.

“However, the debtors have not procured appropriate consent from all parties subject to the releases in the plans.”

He added that, absent the consent, the bankruptcy code does not authorize third-party releases under any test.

Harrington said he also objects to the scope of the injunction and exculpation provisions of the plans.

The confirmation hearing is scheduled for Jan. 19.

China Fishery is a Hong Kong-based manager and operator of fishing vessels for coastal and deep-sea industrial fishing. The company filed bankruptcy on June 30, 2016 under Chapter 11 case number 16-11895.

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