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CFG Bankruptcy Settlement Approved

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The U.S. Bankruptcy Court approved China Fishery Group’s Chapter 11 trustee’s settlement agreement related to inter-company claims among and between CFG Peru Singapore, the other Debtors and non-debtor affiliates (including CFG Peru Singapore subsidiaries).

As previously reported, “The Peruvian Opcos have repeatedly been referred to as the ‘crown jewels’ of these Chapter 11 Cases and their value is likely to be the prime source of creditors’ recoveries at the Debtor entities in the CFGL group….The Chapter 11 Trustee has sought to monetize all or substantially all of the assets of the Peruvian Opcos, currently through a sale of CFG Peru Singapore’s equity interest in CFGI (the ‘CFG Peru Sale’), the proceeds of which would first be used to pay the creditors of the Peruvian Opcos, with any remaining proceeds ultimately used to pay creditors of CFG Peru Singapore and certain of the Other Debtors.”

In addition, “Finally, and most importantly, the Chapter 11 Trustee has concluded that the uncertainty surrounding certain Intercompany Claims is likely to chill bidding in the CFG Peru Sale, since potential bidders cannot be sure whether they will be liable for any Intercompany Claims even after the consummation of the CFG Peru Sale process and exit from these Chapter 11 Cases given that the Peruvian Opcos are non-debtor entities. Of particular significance is an approximately $459 million Intercompany Claim owed by CFGI to China Fishery International Limited (‘CFIL’). To resolve these concerns, the Chapter 11 Trustee, the Other Debtors, and the Non-Debtor Affiliates, including the CFG Peru Singapore Subsidiaries have reached a settlement to compensate, assign, spin-off, contribute, forgive, capitalize, pay in kind or such similar or equivalent mechanism as required by any specific jurisdiction, the Intercompany Claims (collectively, ‘Netting’ or ‘Netted’).”

Read more CFG bankruptcy news.

The post CFG Bankruptcy Settlement Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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