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China Fishery, Pacific Andes Resources file for US bankruptcy protection: WSJ
BELEAGUERED China Fishery Group, along with more than 15 affiliates, has filed for Chapter 11 bankruptcy protection in New York, the Wall Street Journal has reported.
According to the report, four other affiliates, including Pacific Andes Resources Development which is also listed on Singapore Exchange, filed for Chapter 15, the part of the bankruptcy code covering international insolvencies.
By filing for bankruptcy in New York, the company will receive the benefits of the US bankruptcy law, including the so-called automatic stay preventing bondholders and other creditors from seizing its assets.
The bankruptcy filing is intended to stop a forced sale of China Fishery's assets at fire-sale prices, according to court papers, WSJ reported.
Shares of China Fishery have been suspended from trading since the company's creditors succeeded in pushing for provisional liquidators to be appointed - they were discharged earlier this year after the company's lenders agreed to support the case for the company not to be wound up - in the wake of China Fishery's inability to pay its debts. The counter was last traded on Nov 25, 2015, at 7.6 Singapore cents.
Shares of Pacific Andes Resources have also been suspended from trading since last November and were last traded at 2.2 Singapore cents.