Senior note holders, which have been promised nearly $119 million (€106 million) from China Fishery Group International (CFGI), filed a complaint with a New York court in June stating the company needs to "remedy myriad long-standing breaches" from failing to pay the creditors back.
The note holders -- which include Burlington Loan Management, Cowell & Lee Asia Credit Opportunities Fund and the Hutch Master Fund -- have asked the court to prevent CFGI from plummeting further into debt until the companies are compensated.
China Fishery has been granting "preferential treatment" to other unsecured creditors, who are also owed hundreds of millions of dollars, according to senior note holders.
Their complaint called into question the court earlier this year allowing CFG Trustee William Brandt to divvy up $75 million (€68.6 million) in "excess cash" from Peruvian operations to pay back unsecured note holders and club lenders.
The senior note holders have asked to also receive "their equitable (and contractually assured) share" of any distributions from China Fishery's Peruvian operations.
China Fishery is one of the world’s largest producers and suppliers of fishmeal and fish oil through its fishing and processing operations located along the coast of Peru.
The group operates as a separate business within the larger Pacific Andes group of companies, which at one time was one of the largest seafood companies in the world.