China’s Pacific Andes Resources meets with 8˝% bondholder committee

By Caroline Salls

Pittsburgh, March 22 – Pacific Andes Resources Development Ltd. held the first meeting with an informal steering committee of holders of its 8˝% bonds due 2017, according to a news release.

The company said the meeting touched on the role of the committee, the frequency of meetings and the appointment of a legal adviser to the committee. In addition, the parties agreed to increase the level of communication between the company and bondholders so that they can be kept abreast of developments related to Pacific Andes’ efforts to achieve a satisfactory settlement with bondholders.

The committee members selected Shook Lin & Bok LLP as their legal adviser.

The next meeting will be held when the company has more information and clarity on the sale of the Peruvian business by China Fishery Group Ltd., the release said.

As previously reported, Pacific Andes was unable to make the interest payments due Jan. 30 on the bonds because of the necessity of preserving cash for ordinary business operations.

The company said the payment, along with all noteholder claims, “will be settled in the context of the open and transparent process put in place with other long-term financial creditors of the China Fishery Group.”

In addition, Pacific Andes said the sale of its Peruvian fishmeal and fish oil business could result in a settlement of the bonds. As such, the bondholders agreed to stabilization proposals, including the establishment of an informal committee of bondholders and the hiring of restructuring counsel.

Pacific Andes Resources is a Hong Kong-based seafood company.

© 2015 Prospect News.
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