Pacific Andes Resources Development in restructuring plan talks

By Caroline Salls

Pittsburgh, April 18 – Pacific Andes Resources Development Ltd. provided an update on its restructuring in a Thursday news release.

The company said discussions with creditors and potential investors regarding the filing of an amended restructuring plan are continuing, and Pacific Andes hopes to file an amended plan as soon as possible.

In addition, Pacific Andes said it has been advised that the Chapter 11 trustee of indirect subsidiary CFG Peru Investments Pte. Ltd. has held meetings with creditors to update them on steps he is taking in connection with an asset sale process.

According to the release, indirect subsidiary China Fishery Group Ltd. (CFGL)’s Chapter 11 trustee is seeking approval of the U.S. Bankruptcy Court for the Southern District of New York to make an interim distribution to some creditors from $75 million in excess cash.

These payments would satisfy a portion of amounts due on CFGL’s senior notes and club loan. A hearing was scheduled for April 18.

Pacific Andes said the court has approved a $10 million increase and a maturity extension to Dec. 31, 2019 on a loan used for payment of administrative expenses. The loan amount was increased to $30 million from $20 million.

The company also said in the release that its frozen fish supply chain division’s trading business was not operational during the quarter ended Dec. 28 because of a lack of working capital. Pacific Andes said its ocean logistics and agency services business was also not operational during the quarter in question.

The company said it will continue to explore opportunities to obtain working capital in the future.

Pacific Andes said an independent review committee is reviewing a draft report on a forensic review of its Pacific Andes International Holdings Ltd. parent company to determine whether the draft adequately deals with the scope of the forensic review.

According to an update provided by CFGL, Sung Yu Ching stepped down from the role of China Fishery managing director as of April 1 and was re-designated as a non-executive and non-independent director.

Following Sung’s re-designation, China Fishery’s board includes executive chairman Ng Joo Kwee, executive director and chief executive officer Ng Puay Yee, Sung, lead independent non-executive director Tse Man Bun and independent non-executive directors Lim Soon Hock and Tan Ngiap Joo.

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. The company filed for bankruptcy on June 30, 2016 under Chapter 11 case number 16-11890.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.