A number of China Fishery’s bank lenders have filed a motion in a New York court seeking the appointment of a Chapter 11 trustee “in the interests of the creditors and other interests of the estate.”
An appointed Chapter 11 trustee essentially becomes the CEO of the debtor, exercising such day-to-day control as he or she deems appropriate. The trustee, therefore, essentially displaces the management that got the debtor in its financial predicament.
If a trustee is appointed by the court, the trustee would assume management of the Chapter 11 debtors, and China Fishery's management considers this would have a detrimental effect on the business and prospects of the company and its subsidiaries and, in particular, its Peruvian subsidiaries.
The
