China Fishery Group accepting anchovies in lieu of cash to meet Copeinca obligations deadline
SEAFOODNEWS.COM [Bloomberg] By David Yong and Christine Jenkins - August 21, 2014 -
China Fishery Group Ltd. (CFG), the anchovy seller accepting fish in lieu of cash from a supplier, faces a second deadline today as it seeks bondholder approval to let its unit in Peru guarantee as much as $1.2 billion of debt.
The Singapore-listed group is pushing for Corporacion Pesquera Inca SAC, its Lima-based unit known as Copeinca, to back obligations including $650 million of credit lines from five lenders, $300 million of its July 2019 bonds and future borrowings, company filings show.
That would require a majority of holders of Copeinca’s $250 million notes due February 2017 agreeing to relax the bonds’ covenants, according to a July 17 consent solicitation document.
“It’s very negative for bondholders to consent to this because Copeinca is now going to represent basically the vast majority of China Fishery’s earnings and it has the least amount of debt,” Mariela Anguiano, an analyst at BCP Securities LLC in Greenwich, Connecticut said by phone Aug. 20. “If you make a simple calculation, it doesn’t make sense from a bondholder perspective.”
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