May 26, 2022

Pacific Andes fails to dismiss KPMG in Cayman Islands hearing

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Screen Shot 2016-01-11 at 1.16.02 PMFrom Undercurrent News

The joint provisional liquidators (JPLs) from KPMG will continue in place at China Fishery Group in the Cayman Islands, after a hearing took place on Jan. 8.

Pacific Andes International Holdings (PAIH) was successful in having the the JPLs discontinued in a hearing in Hong Kong, arguing a better value for the company’s Peru assets can be obtained by the management being involved in a sale.

CFG Peru Investments, which owns the Peru fishmeal and fish oil assets, including Copeinca, is based in Singapore and is a subsidiary of China Fishery in Cayman, however.

Although the KPMG executives were discontinued as JPLs in Hong Kong, the hearing in Cayman on the winding up of the company did not end with the same result.

According to a stock exchange release from China Fishery and the JPLs, the hearing on the winding up petition filed in Cayman by lender HSBC resulted in an adjournment until a date in the week starting Jan. 18.

“In this regard, the JPLs note that the company, acting by its directors, has also made an application to the Cayman court on Jan. 5, 2016 to discharge the JPLs,” the statement reads.

“The application has not yet been listed for hearing before the Cayman court. For the avoidance of doubt, the JPLs currently remain in office,” it continues.

HSBC also plans to appeal against the discontinuance orders for the JPLs in Hong Kong, the statement continues.

A spokesman for PAIH declined to comment to Undercurrent.

The news from the Cayman hearing comes as Pacific Andes Resources Development (PARD) said the company has received a letter from HSBC, alleging it is in breach of obligations of its bond.

On Sunday, the company issued a stock exchange alert stating it has received a letter from HSBC, as trustee of the SGD 200 million 8.5% bonds due 2017, alleging PARD is in breach of certain of its obligations under the terms and conditions of the bonds.

PARD is seeking legal advice in relation to the letter and, in addition, is in dialogue with a substantial holder of the bonds “with a view to establishing a transparent process for discussions and communications with all holders”, it said, in a statement.

No further details on how HSBC is alleging the conditions of the bond have been breached were given in the statement. HSBC did not respond to a request for more information from Undercurrent.

A PARD spokesman referred Undercurrent to the stock exchange release and did not comment further.

Both KPMG and Pacific Andes are talking to different buyers for the group’s Peruvian anchovy harvesting assets, it was revealed in a stock exchange release on Jan. 6.

Pacific Andes claims to have two offers valuing its Peruvian anchovy fishing assets, including Copeinca, at $1.7 billion.

Meanwhile, the JPLs, executives from KPMG, “have been and continue to be in discussions with numerous prospective buyers”, according to the stock exchange release from China Fishery.

The possible buyers the JPLs are in talks with, however, are no the same as the entities Pacific Andes claims to have offers from.

In fact, the JPLs state they were presented with the copies of the non-binding memorandums of understanding (MoUs) signed by two prospective buyers for the Peruvian assets on Dec. 29, 2015, but they were dated Dec. 23 and Dec. 24, 2015.

The MoUs were “purportedly to be entered into by CFG Peru Investments Pte. Ltd., a 100% owned indirect subsidiary of the company, as the vendor”, although it was not executed by CFG Peru Investments, reads the statement.

Chinese agribusiness and feed companies, as well as investment fund Fosun, are seen as likely bidders for the Peru assets.

IMAGE: Anchovy fishing in Peru. Photo: Copeinca

For more on this story go to: https://www.undercurrentnews.com/2016/01/11/pacific-andes-fails-to-dismiss-kpmg-in-cayman-hearing/

See related iNews Cayman story published January 7 2016 “Court removes KPMG as provisional liquidators for Pacific Andes – next hearing Cayman Islands” at: https://www.ieyenews.com/wordpress/court-removes-kpmg-as-provisional-liquidators-for-pacific-andes-next-hearing-cayman-islands/

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