China Fishery parent inks agreement tied to dismissal of liquidators

By Caroline Salls

Pittsburgh, Jan. 6 – China Fishery Group Ltd.’s joint provisional liquidators said a deed of undertaking was executed by parent company Pacific Andes International Holdings Ltd. and its Pacific Andes Resources Development Ltd. subsidiary in favor of three of their club loan bank lenders that sets consequences for the dismissal of the provisional liquidators in Hong Kong and the Cayman Islands.

As previously reported, the High Court of the Hong Kong Special Administrative Region ordered that the appointment of provisional liquidators for China Fishery in Hong Kong be discontinued.

According to a news release, the deed of undertaking says that, in the event of the dismissal or withdrawal of the provisional liquidators in both Hong Kong and the Cayman Islands, the following steps will be taken:

• Within five business days, PriceWaterhouseCoopers will be hired by the company and its subsidiaries to undertake an independent reporting accountant role in addition to being fully involved in a sale process for the China Fishery Group’s Peruvian business and/or assets;

• The appointment of a chief restructuring officer by the Pacific Andes entities will, as soon as possible, be ratified by China Fishery and be extended to the company and the China Fishery Group. The CRO’s scope of work will include all aspects of the business and affairs of the group, including an active involvement in the sales process for the Peruvian business in conjunction with the existing management and a professional advisory firm;

• The Pacific Andes entities will consult the majority club lenders on the constitution of the board of directors of the company and its subsidiaries and obtain the lenders’ consent to any board changes;

• A new chief financial officer will be appointed for the China Fishery Group if appropriate by March 30; and

• A guarantee will be executed by China Fishery indirect subsidiary CFG Peru Investments Pte Ltd. for the debt owed under the club loan by Jan. 15.

The company said the deed also included an undertaking by Pacific Andes to procure co-operation and render all necessary assistance to the Cayman joint provisional liquidators in the discharge of their duties to China Fishery, as long as their appointment is continued by the Grand Court of the Cayman Islands.

While the Hong Kong court refused the petitioner’s applications for leave to appeal and for a stay of execution of the discontinuance orders, China Fishery said the petitioner is still entitled to seek leave from the Court of Appeal of the Hong Kong Special Administrative Region to appeal the orders.

China Fishery is a Hong Kong-based manager and operator of fishing vessels for coastal and deep-sea industrial fishing.

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