Advertisement

China Fishery Group Bankruptcy Objections Filed

Advertisement

Multiple parties–including Malayan Banking Berhad (Maybank), Hong Kong Branch; CooperatieveRabobank, DBS Bank (Hong Kong), Standard Chartered Bank (Hong Kong), the club lender parties; Bank of America and the senior noteholder committee–filed with the U.S. Bankruptcy Court separate objections to China Fishery Group’s motion for an exclusivity extension.

Maybank asserts, “The Debtors’ creditors continue to have legitimate cause for concern regarding the Ng family’s ability to exercise sound business judgment and provide the expertise and oversight that creditors and other interest holders should be able reasonably to expect of a chapter 11 debtor.”

In addition, “These causes for concern arise from a number of aspects, which Maybank noted at the outset of these Cases, including among others: (i) the existence of questionable prepetition intercompany and third party transactions that have yet to be addressed by the Debtors or their professionals, (ii) the dismissal and resignation of independent fiduciaries that had been in place with the agreement of the Debtors prior to the commencement of these Cases, and (iii) the utter lack of transparency and ordinary course reporting from the Debtors and their non-Debtor affiliates while under the control of the Ng family, including the inability or unwillingness to prepare audits. Notwithstanding the appointment of a Chapter 11 trustee for CFG Peru (the ‘Chapter 11 Trustee’) and the Moving Debtors’ repeated promise of a forensic report allegedly being prepared by RSM Corporate Advisory (Hong Kong) (‘RSM Report’), ten months into these Cases, none of these concerns have been addressed in any meaningful way and Maybank’s requests for information and explanation in relation to ongoing concerns have been met with little to no response. The Ng family has failed to take advantage of the precious opportunity afforded them during the first ten months of these Cases to take steps to repair the damaged relationships with Maybank and many of their other lenders. They failed to take even a first step and time has now run out.”

Read more CFG bankruptcy news.