Pacific Andes, China Fishery provide updates on restructuring cases

By Caroline Salls

Pittsburgh, Sept. 9 – Pacific Andes Resources Development Ltd. said the moratorium on all actions or legal proceedings against the company, Pacific Andes Enterprises (BVI) Ltd., Parkmond Group Ltd. and Pacific Andes Food (Hong Kong) Co. Ltd. has been extended to Sept. 13.

Pacific Andes said the companies are applying to the court for a four-month extension of the moratorium, and the extension is supposed by an informal steering committee of bondholders.

The company said the extended moratorium will allow time for a consensual restructuring plan to be developed and agreed with creditors.

In addition to consideration of the moratorium, Pacific Andes said the Sept. 13 hearing will also cover an application by Bank of America for leave to begin winding up proceedings, Maybank’s applications to set aside the moratorium and the opposition by Rabobank and Standard Chartered Bank to the group’s applications for an extension.

Pacific Andes also said a forensic review is expected to be completed this month, with a draft report to be issued to an independent review committee in late September.

The company said finalization of its 2015 annual results and the results for the first three quarters of 2016 are dependent on the completion of the review.

Pacific Andes subsidiary China Fishery Group Ltd. said in a separate release that a hearing was held in late August on a motion filed by club lenders for the appointment of a trustee to oversee China Fishery’s Chapter 11 bankruptcy case. The company said the court will deliver its decision “at a date to be determined.”

China Fishery said the appointment of a trustee “would result in the immediate and severe destruction of value for all of the stakeholders across the group.”

The company said it previously experienced the value destruction as a result of the imposition of the joint provisional liquidators in November 2015, which have been discharged, and China Fishery believes that there will be a similar adverse reaction in Peru and globally to any appointment of a trustee.

Also, China Fishery said a quick sale of its Peruvian fishmeal business, which is favored by the bank lenders, would not be in the best interests of all creditors and other stakeholders.

China Fishery said there has been no progress in relation to the restructuring proceedings in Peru up to this point. The company said Peruvian tribunal Indecopi has yet to formally announce the beginning of the proceedings.

Hong Kong’s Pacific Andes provides a range of at-sea transportation and logistical services to fishing companies and also operates fishing fleets and fishmeal processing facilities in the Pacific region.

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 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 16-11890.

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