Court gives green-light to sale of China Fishery vessels
Lenders initially objected to terms of the deal, and claimed the trustee was only seeking a 'windfall' on the sale.
The trustee in the China Fishery Group Chapter 11 case has been given the go-ahead to sell three of the companies vessels, upon an agreement forced by lenders that funds from the sale be held in reserve, pending the final hearing.
Senior noteholders of China Fishery Group filed an objection to the sale of the Enterprise and Pacific Champion as well as factory vessel Damanzahiao, previously known as Lafayette, earlier this month claiming the sale of the assets would constitute a violation of the indenture on assets sales.
They also raised concerns on the intended use of the proceeds of the sale.
“[The sale] would provide a windfall to the trustee and other CFG stakeholders at the expense of senior noteholders,” a document previously submitted by the creditors read.
William A. Brandt, Chapter 11 trustee of CFG Peru Investments, agreed to sell the Enterprise and Pacific Champion to Singapore-based Russian investor DVS-R PTE earlier this month for $6.8 million (€5.5 million) shortly after the same company beat out a bid of $11.2 million (€9.1 million) for Damanzahiao.
However, according to court documents, published Monday, the notice of sale has now been revised, leading to a "partial" withdrawal of objections to the sale by the senior noteholder committee and TMF.
