China Fishery Group

[kikababoo]

ridiculous financing... "9.75% is somewhere decent in the middle of valuation range."

Obviously the management will claim to grow at a rate above 9.75%, if it was that easy to generate an ROE above 10%, many competitors will be attracted into this fishing industry...

If you own a company that has to tap on 9% financing, you had better try to find a new (and silly) owner for your company

Fast forward to today, the state of affairs is pathetic. The many banks that made huge loans to fund CFG's growth must have felt stupid. I recall epicentre taking up a loan at high interest rate recently, can we expect it to suffer the same fate?

From my cursory look, the coy does have valuable assets in certain waters. The banks might not lose much depending on the bankruptcy process and outcome.

Epicentre took up 13.5% of 1 mil from moolahsense. (1 year maturity). 

As long as Epicentre doesn't bleed too much in opex, and that the inventory and receivables doesn't devalue by extreme amounts over night, the moolahsense investors should turn out alright. but it's buyers beware anw. good luck.

[karlmarx]

About one and a half years after trading of China Fishery was suspended, the sale of CF assets by parent Pacific Andes has gone through numerous ups and downs.

The club lenders (bank creditors) has been pushing for a fire sale of CF assets while Jessie Ng continues to resist such moves, rejecting low bids and the club lenders' appointment of liquidators. The poor fishing seasons, and hence financial performance, of 2015 and 2016, may have been the main reason behind several aborted sales.

https://www.undercurrentnews.com/2016/08...ight-time/

https://www.undercurrentnews.com/2016/11...peru-sale/

With the recovery in anchovy fishing in Peru, mainly due to the receding El Nino (even in Singapore, it has been raining more), the likelihood of a sale of CF assets at a reasonable price seems possible. The price of its July 2019 bond, which has stopped paying coupons, seem to also suggest this.

https://www.bondsupermart.com/main/bond-...P25239AB34

[karlmarx]

CF released operational information on its latest fishing season which point to improved catch amidst a higher quota (total allowable catch). This has been largely due to the departure of El Nino.

http://infopub.sgx.com/FileOpen/CFGL%20-...eID=453593

Some financial information was also released, which showed CF being in the red of US$60m in 2015 and US$41m in 2016. Not that this is surprising. It seems the purpose of this release is to inform stakeholders of the (renewed) possibility of a sale of CF, and hence, return of their monies.

[CY09]

As a current shareholder, I am more interested in China fishery showing it's cash flow ability . No doubt it is in the red, I am more interested in where the red is coming from.

If it is because of a writedown in Goodwill, I am satsified. If it is due to a thin gpm, which turn to a net loss. I will be worries

[karlmarx]

Buyers of China Fishery's 9.75% 2019 bonds, which stopped paying coupons for two years, are currently bidding at 92.375. This is higher than some of the bonds (Pacific International Lines 7.25% 2018 last bid @ 72.5) which have not defaulted.

https://www.bondsupermart.com/main/bond-...P25239AB34

https://www.bondsupermart.com/main/bond-.../QJ6543293

[karlmarx]

Stakeholders of CFG may see the return of their monies if a renewed sale process takes off within the next few months:

https://www.undercurrentnews.com/2017/07...d-parties/

It seems that US$1.5b is the floor price that they expect; this would repay CFG creditors and perhaps also leave something for shareholders. For PAIH, not all creditors can expect to be repaid if the sale is concluded at this price. Therefore, shareholders of PAIH cannot expect to get anything. And so it makes sense when it has been revealed that the Ng family were trying to frustrate the sale process last year, as the bids that came in (around US$1.5b) meant that there would be nothing left for them, as they were the ultimate majority shareholder of PAIH.

https://www.undercurrentnews.com/2016/09...-anything/

Their intent may have been in trying to buy more time to turn the businesses of PAIH and CFG around. After all, an improved CFG will give them a better sale price, and more proceed to PAIH.

[karlmarx]

Buyers of China Fishery's 9.75% 2019 bonds, which stopped paying coupons for two years, are currently bidding at 100.625, suggesting that these bond holders may be getting their monies back.

https://www.bondsupermart.com/main/bond-...P25239AB34

An Undercurrent report on 25 August:

Riding on the strength of Peru's best anchovy season since the disastrous effects of El Nino helped prompt its bankruptcy, China Fishery Group says it may come close to tripling its earnings in 2017.

...

According to Brandt, "approximately 65" parties, some of who participated in the aborted 2016 sale process of China Fishery, have expressed interested in the sale and "several" have signed confidentiality agreements allowing them access to a data room with due diligence information.

...

https://www.undercurrentnews.com/2017/08...le-teaser/

[karlmarx]

After 2 years of trying to sell CFG, is William Brandt close to sealing a deal this time? Or is he crying wolf again?

https://www.undercurrentnews.com/2018/11...sm-builds/

https://www.undercurrentnews.com/2018/09...l-lima-hq/