China Fishery and affiliates’ plan confirmation hearings now Feb. 14

By Sarah Lizee

Olympia, Wash., Feb. 9 – China Fishery Group Ltd. (CFGL) and Pacific Andes Resources Development Ltd. (Bermuda) (PARD) and their affiliates’ hearing on confirmation of their sixth amended Chapter 11 plan or reorganization was moved to Feb. 14, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

In addition, debtor Pacific Andes International Holdings Ltd. (Bermuda) (PAIH) and its affiliates’ hearing on confirmation of their separate sixth amended Chapter 11 plan of reorganization was moved to Feb. 14.

As previously reported, China Fishery said that due to the corporate structure, the business organization and the companies’ operations, the restructuring of the debtors was set to be implemented through three separate Chapter 11 plans, including the CFG Peru plan, which was confirmed on June 10, 2021, China Fishery and Pacific Andes Resources’ plan, and Pacific Andes International’s plan.

CFGL, PARD plan

According to the disclosure statement, distributions under the plan are premised on the receipt by the debtors of at least $20 million in settlement proceeds, plus $6 million allocated for administrative expense claims and reimbursements.

Under the plan, administrative claims, professional fee and management salary claims, priority tax claims and other priority claims will be paid in full.

Holders of CFGL or PARD secured claims will receive payment in full in cash or reinstatement.

Holders of CFGL unsecured facilities claims will not receive any recovery under the plan, as their claims were satisfied, released or waived under the CFG Peru plan and settlement agreement.

Holders of CFGL general unsecured claims will receive a pro rata share of the CFGL GUC distribution pool.

Holders of CFGL subsidiary general unsecured claims will receive their pro rata share of the CFGL subsidiary distribution pool.

Holders of intercompany claims will receive no recovery.

Intercompany interests will be reinstated.

Existing CFGL interests will be reinstated. Holders will receive their pro rata share of 29.5% of the CFGL equity distribution pool. Holders of existing PARD interests will receive no distribution.

Holders of Taipei Fubon term loan claims will receive their pro rata share of the super investment distribution pool.

Holders of PARD bond claims will receive their pro rata share of the PARD distribution pool.

Holders of Citic banking facilities PARD claims, Maybank PARD group facility claims, Standard Chartered PARD group facility claims, UOB banking facility claims, Rabobank PARD group facility claims, Bank of America PARD group facility claims, DBS PARD group facility claims, Sahara loan claims and PARD general unsecured claims will receive their pro rata share of the PARD distribution pool.

PAIH plan

According to the disclosure statement, the PAIH plan intends to satisfy the claims of the creditors through, among other things, payment of cash from sale transactions proceeds and liquidation of other residual assets, or distribution of property interests held to secure certain claims.

Under the plan, holders of Qingdao plant-related facility claims will be deemed fully satisfied.

Holders of Maybank secured facility claims will receive their pro rata share of $4 million in cash.

Holders of other secured claims will receive payment in full in cash or reinstatement of their claims.

Holders of other priority claims will receive payment in full in cash.

Holders of Maybank PATM term loan claims, Maybank banking facility claims, Rabobank Europaco trade facility claims, Rabobank NFS facility claims, Standard Chartered banking trade facility claims, Citic banking facility PAIH claims, Pickenpack letters of comfort claims, KBC facility claims, UOB banking facility Europaco claims, Fubon factoring facility claims, Richtown intercompany claims, Pacos Trading intercompany claims, PAE BVI intercompany claims and general unsecured claims will receive a cash payment in an amount equal to 8.75% of their claims.

Holders of PAE HK loan claims will receive a cash payment equal to 60% of their claims.

Holders of Teh Hong Eng loan claims will receive their pro rata share of the PAIH distribution pool.

Holders of NS Hong Club facility guaranty claims and intercompany claims will not be entitled to any recovery.

Intercompany interests will be reinstated.

Existing interests will be canceled, except for those in NS Hong, and holders will receive no distribution.

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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