A restructuring plan for China Fishery Group’s (CFG) fishmeal business, which would ultimately see creditors taking full ownership of the operations in Peru, is moving closer to approval without any “conforming” bids received from potential buyers.

After dragging on for five years, China Fishery Group International (CFGI) trustee William Brandt was unable to procure viable bidders by June 1 to sell the troubled company's lucrative Peru operations.

On Thursday, co-counsel for a creditor group representing holders of CFG's senior notes and club loans submitted a plan agreement to a New York bankruptcy court with hundreds of pages of signatures and details on settlement funds.

If approved, the plan would result in $20 million (€16.4 million) in settlement funds to be distributed among the creditors, along with an additional $5 million (€4.1 million) to be distributed among them for "any fees, expenses, costs, and disbursements, including professional fees" that the agreement calls "holdback funds."

The plan also includes a Restructuring Support Agreement (RSA) that would "strengthen, safeguard and provide funding" for the fishmeal business of CFGI and its subsidiaries, according to the parties.

The restructuring would mean $150 million (€124.1 million) in new financing to support continuing operations and growth of the business, and more than $700 million (€579.1 million) of existing debt converted into new equity.

The plan still needs court approval. Lawyers for the creditors added they intend to file a revised version of the plan "contemplating the terms of the Global Settlement Agreement" prior to a New York bankruptcy court hearing to confirm the plan that will occur on June 9.

The details of that agreement were not disclosed in court documents.