CFG Bankruptcy Extension Sought


China Fishery Group (CFGL) filed with the U.S. Bankruptcy Court a fourth motion to extend the exclusive period during which the Company can solicit acceptances for its plan through and including February 28, 2018, without prejudice to the Debtors’ right to seek further extensions with respect to Pacific Andes Resources Development (PARD), those Debtors that commenced their cases in March, April or May of 2017, and any affiliate of the Debtors that commences a case under Chapter 11 of the Bankruptcy Code after entry of an order granting the relief requested in this motion.

The motion explains, “Given that the Approved Timeline was postponed; the Debtors need an approximately five-week extension of the Exclusive Solicitation Period to re-align the plan confirmation timeline with the Sale Process. Pre-mature expiration of the Exclusive Solicitation Period will likely disrupt the Sale Process to the detriment of all creditor and stakeholder parties….Moreover, since the filing of the Plans and Disclosure Statements, the Debtors have been actively involved in negotiations and solicitation of comments on the Plans from creditors and potential plan sponsors. Since the Plans were filed in late September, meetings between the Debtors and all creditors, including principals, have been taking place in Asia throughout October and November, with productive and encouraging results. In connection with both the CFGL/PARD and PAIH Plans, the Debtors have also been engaged in advanced discussions with potential plan sponsors who are actively engaged in conducting due diligence.”

In addition, “Finally, the Debtors are not seeking an extension of the Exclusive Solicitation Period to pressure creditors; rather, the Debtors request an extension so that they may re-align themselves with the Chapter 11 Trustee’s Sale Process and maximize recovery for all creditors and stakeholders. The Chapter 11 Trustee is currently in the process of securing a stalking horse bidder. A pre-mature expiration of the Exclusive Solicitation Period would create uncertainty on the Sale Process and could discourage potential bidders from participating by alerting them to the possibility of a competing plan from a third party other than the Debtors and the Chapter 11 Trustee.”

The Court scheduled a December 20, 2017 hearing to consider the extension motion, with objections due by December 13, 2017.

Read more CFG bankruptcy news.