A plan proposed by a group of creditors earlier in March is likely to wrap up a years-long bankruptcy saga for China Fishery Group by the end of this year.
A US bankruptcy judge has stated creditors involved with a China Fishery creditor plan are expected to takeover of China Fishery Group’s (CFG) fishmeal business by the end of this year.
On Aug. 13, New York Bankruptcy Judge James Garrity, Jr. ordered creditors including Hongkong and Shanghai Banking Corporation (HSBC) and Bank of America to "consummate" the plan with the expectation it will be in effect by the end of this year.
After the creditors take over, they are expected to offload the fisheries business, through a sale, initial public offering or some other divestment route.
Garrity also ordered the plan's administrator pay HSBC $5.5 million (€4.7 million) for "restructuring expenses" incurred by taking over the CFG business.
The creditor plan was approved by the court after no appropriate bids were received from potential buyers.
