HSBC, the bank that called in the liquidators on upstream fisher and fishmeal producer China Fishery Group last year, has now struck an agreement with the company and its other lenders.
In a Singapore Exchange announcement on Sunday night, parent Pacific Andes Resources Development said China Fishery entered into the deed of undertaking on Jan 20.
HSBC agreed to remove and terminate the appointment of the KPMG joint provisional liquidators, and apply for the dismissal of the winding up petitions to be heard in the Cayman Islands and Hong Kong, while terminating any appeal against a previous Hong Kong court order to dismiss the liquidators.
As part of the agreement, Grant Thornton Hong Kong has been appointed as an independent accountant, and a chief restructuring officer for China Fishery has also been appointed.
Within 21 days of the deed, an interim payment of US$3.1 million will be paid to KPMG provided it seeks approval of such costs and expenses from the Cayman and Hong Kong courts, Pacific Andes said.
However, the KPMG liquidators are refusing to be discharged until the interim payment is made immediately before approval of the amount by the courts.
Their costs are increasing and are now US$3.2 million given their work "to refuse their immediate dismissal", Pacific Andes said.
But the company said it is committed to doing what is necessary to terminate the appointment of the liquidators.