Pacific Andes says talks with creditors, potential sponsors 'encouraging and productive'
Its key subsidiaries had combined unaudited turnover of HK$225m in the year ended Sept 28
Singapore
IN an update on its restructuring process, seafood company Pacific Andes on Friday said that regular confidential discussions with creditors, bondholders and potential plan sponsors are continuing in order to facilitate the filing of an amended restructuring plan with a committed plan sponsor.
The company said the discussions have been "encouraging and productive", adding that it will give an update to shareholders as soon as a committed plan sponsor is in place.
It also provided updates on its operational and financial performance. Throughout 2017, the company's frozen fish supply chain division's trading business was not operational due to the lack of working capital, while its ocean logistics and agency services business was operational for a limited period during this time.
The operations of its subsidiary China Fishery Group in Peru have been continuing. The Peruvian Ministry of Produce set the total allowable catch for the second 2017 fishing season in the North and Centre region of Peru at 1.49 million tonnes. The season ended last month.
"The entire industry was impacted throughout the season by a number of periods during which fishing was suspended by the government due to a high presence of juveniles," it said.
Financially, in the year ended Sept 28, 2017, the company's principal subsidiaries recorded a combined unaudited turnover of HK$225 million (S$37.7 million), an 8 per cent drop from HK$244 million in the previous fiscal year.
Ebitda fell from HK$11 million in FY16 to a loss of HK$12.5 million in FY17. The combined loss before tax was HK$42.6 million in FY17, compared to HK$34.5 million in FY16, due to the fuel and repair costs for certain transportation vessels, it said.
As for China Fishery Group, the key driver of its financial performance in FY17 was the first 2017 fishing season in Peru's North and Centre region which ended in July 2017.
"The total catch was the largest in the North/Centre region since the first half of 2015, and represented an increase of 17.7 per cent on the last season of 2016," it said.
Meanwhile, the outstanding work for completion of the review by RSM Corporate Advisory (Hong Kong), an independent forensic accountant, has been "substantially concluded".
RSM has advised that the final draft report should be submitted to the independent review committee of parent firm Pacific Andes International Holdings by Feb 15, 2018. Pacific Andes will announce the findings of the review then.
