China Fishery against court appointing a US trustee

Beleaguered China Fishery has claimed that the appointment of a United States trustee would subject its bankruptcy estate to “greater costs than benefits” and result in a “severe destruction of value” for stakeholders. The Singapore-listed fishmeal supplier had filed for Chapter 11 protection in New York in June, along with more than 15 affiliates. Its parent firm, Hong Kong-based Pacific Andes International, also filed for bankruptcy in New York. China Fishery said the filing is aimed at stopping a fire sale of its assets, particularly its most valuable – the Peruvian fishmeal business that is valued at up to US$1.7 billion (S$2.3 billion). In bankruptcy papers obtained by The Straits Times, China Fishery argued that the appointment of a trustee would be “perceived as a mandate to comply with the lenders’ desire for a quick sale”. Further, “additional costs would compound” as a trustee would be “entitled to commissions of up to US$30 million for each US$1 billion of asset distributions”, it said in court papers filed on Sept 2. Read the story here 19:15

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