China Fishery bonds drop 34% after HSBC asks court to wind it up

[HONG KONG] Bonds issued by China Fishery Group Ltd plunged 34 per cent on Thursday after HSBC Holdings Plc said it asked the Hong Kong High Court to wind up the company and appoint a liquidator.

"HSBC filed an application to the High Court of the Hong Kong Special Administrative Region to appoint provisional liquidators to two companies with operations in Hong Kong: China Fishery Group Ltd and China Fisheries International Ltd," HSBC spokesman Adam Harper said by e-mail Thursday.

Geoff Walsh, a Hong Kong-based spokesman for Singapore- listed China Fishery Group, declined to comment.

The company's 2019 bonds were bid at 33 cents on the dollar, according to prices from SC Lowy Financial (HK) Ltd.

In August, China Fishery Group and its parent Pacific Andes International Holdings Ltd said they had received notices from the Monetary Authority of Singapore and the Commercial Affairs Department stating they were being investigated for an offence under the Securities and Futures Act. On Nov 10, Moody's Investors Service downgraded the company to Caa2, its third lowest score, saying the company didn't have enough cash to cover operating and debt expenses over the next 12 months.

BLOOMBERG