Citic bank. (Photo: Gnihcaetos/CC BY-SA 3.0)
Two Chinese banks oppose to China Fishery temporary administration
(PERU, 8/25/2016)
Two Chinese banks announced their rejection of a temporary administration of Pacific Andes International Holdings Group -- parent of China Fishery Group--, as it had been requested less than two months ago by a group of creditor banks.
This decision, taken by the banks Ag Bank and Citic, comes amid the bankruptcy protection process through which China Fishery is going at Court in New York.
While Pacific Andes owes USD 68.9 million to Ag Bank, executives of the financial entity argued in documents sent to a US court that "a temporary administration would risk the business that Pacific Andes has in China," Semana Economica informed.
In the Asian country, the Chinese group operates a frozen fish fillet processing plant.
Ag Bank's announcement was followed a few days later by another one on the same line from Citic International Bank, although this entity had joined the group of creditors -- together with Rabobank, Standard Chartered and DBS -- who initially requested a temporary administration for the fishing group.
Citic managers did not justify the change in position, but said they would prefer "the appointment of a restructuring director and an accountant to oversee the group’s accounts". Both should be near the group of creditor banks and "could not be removed without their consent," they said.
The aforementioned group of four creditor banks in July accused the executives of Pacific Andes of performing "suspicious transactions" for USD 1,000 million and of locking the sale of China Fishery and COPEINCA in Peru. Given this situation, it argued that a temporary administration would be the only way to ensure that the Chinese fishing group is not using the bankruptcy protection process "to perpetuate mismanagement, poor corporate governance practices or to act with little transparency".
On August 29 a hearing has been scheduled to determine the possible temporary administration of Pacific Andes.
Related articles:
- China Fishery seeks US protection against bankruptcy
- China Fishery Group will sell its Peruvian businesses for USD 1.7 billion
- China Fishery Group's credit rating downgraded due to unpaid loan
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