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Pacific Andes Resources tells bondholders it cannot commit to next coupon due Jan 30
PACIFIC Andes Resources Development said on Thursday it had informed bond investors at a meeting in Singapore on Monday the company was "not in a position to commit" to the payment of the next coupon on Jan 30, 2016, "in a timely manner".
"The preservation of cash for use in the ordinary course of business was the highest priority at this time given existing cash constraints," said the industrial fishing firm.
Following the meeting, an informal committee of bondholders will be set up to establish a line of communication and a discussion process.
Its holding company, Pacific Andes International Holdings, is exploring the sale of China Fishery's Peruvian business, and has received bids by two buyers at an indicative enterprise value of US$1.7 billion.
"This sale could . . . lead to satisfactory settlement of the bonds. It was therefore most important that this sale be pursued in as stable and certain an environment as possible for the benefit of all creditors and other stakeholders of the company."