Pacific Andes Resources Development to look into why unit went into provisional liquidation

THE board of industrial fishing firm Pacific Andes Resources Development has formed a committee to look into the circumstances that led its subsidiary, China Fishery Group, into provisional liquidation.

The independent review committee will also engage an independent accounting firm to conduct a forensic review of the company's financial accounts.

It will comprise Lieutenant-General (Rtd) Ng Jui Ping as chairman, Bertie Cheng Shao Shiong and Chew Hai Chwee, all of whom are independent directors of the firm.

This comes after the group's holding company, Pacific Andes International Holdings, which is listed in Hong Kong, entered into a deed last week with three of its bank lenders, agreeing to engage an independent accounting firm and appointing a chief restructuring officer, among others.

China Fishery had failed to repay a US$31 million instalment on its US$650 million club loan facility due in November, according to a Standard & Poor's note.

Pacific Andes International Holdings said the group was 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.

Trading in the firm's shares has been halted since Nov 26, and is suspended until further notice.