China Fishery Group’s Chapter 11 trustee filed with the U.S. Bankruptcy Court a motion for an order authorizing the Company to obtain inter-company post-petition financing on a super-priority administrative claim basis.
The motion explains, “The Trustee determined that certain of the non-Debtor affiliates in which CFG Peru Singapore has a direct or indirect interest, the CFG Peru Singapore Subsidiaries, would be a logical source of such funding. Third party lenders other than the CFG Peru Singapore Subsidiaries have been unwilling to lend to CFG Peru Singapore on its own given that CFG Peru Singapore has no operations of its own or assets other than its interest in the CFG Peru Singapore Subsidiaries and its other subsidiaries.”
In addition, “Moreover, the CFG Peru Singapore Subsidiaries are currently in possession of funds generated from their operations and from the sale of non-core assets and expect to sell more non-core assets. As such, the CFG Peru Singapore Subsidiaries were a logical source for this short term financing….Lender is CFG Investment S.A.C. (‘CFGI); borrower is CFG Peru Investments (‘CFG Peru Singapore’) and the commitment is $20,000,000. The interest rate is 8% and the default rate is 10%.”
The Court scheduled a June 6, 2017 hearing to consider the motion, with objections due by May 30, 2017.
Read more CFG bankruptcy news.