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China Fishery Group Bankruptcy Sale Approved

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The U.S. Bankruptcy Court approved China Fishery Group’s Chapter 11 trustee’s motion for an order authorizing (a) the private sale of non-debtor vessel Pacific Voyager (currently owned by Sustainable Fishing Resources, a non-debtor subsidiary of CFG Peru Singapore) and (b) the Chapter 11 trustee to consent to and take all corporate actions desirable or necessary in connection therewith.

As previously reported, “[T]he Chapter 11 Trustee seeks entry of an order (i) authorizing the Chapter 11 Trustee to take all corporate governance actions desirable or necessary to effectuate the private sale of the Pacific Voyager pursuant to a Memorandum of Agreement (‘MoA’) and Letter Agreement Regarding Pacific Voyager (‘Side Letter,’ together with the MoA, the ‘Sale Agreement’) by and between SFR and Arctic Raven Pelagic A/S or its nominee (‘Arctic Raven’ or the ‘Buyer’); and (ii) approving the Sale Transaction pursuant to the terms of the Sale Agreement. The sale of the Pacific Voyager will provide the Peruvian OpCos and the Debtor’s estate with additional necessary liquidity. Moreover, entry of an Order approving the Chapter 11 Trustee’s proposed actions provides finality and security to Arctic Raven as buyer of the Pacific Voyager.”

In addition, “The proceeds from the Sale Transaction will be used to repay Copeinca for intercompany loans totalling approximately $2,000,000 USD for various expenses including but not limited to regulatory fees, taxes, customs, inspection and maintenance fees of the SFR Vessels, legal fees, and rental property fees; as well as to potentially pay administrative costs such as U.S. Trustee quarterly fees and fees and expenses for professionals who have not yet received any payment in these cases.”

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