The Supreme Court of Bermuda’s weekly Cause List has recently been revised to show that an urgent application involving Pacific Andes Resources Development has been listed for a 1 day hearing on 30 September 2016, before Mr. Justice Hellman, in Chambers.
“Creditors of cash-strapped frozen fish seller Pacific Andes Resources Development (Pard) appear to have scored a legal victory yesterday. A Singapore court extended a moratorium on legal action launched against the firm but ruled that it cannot restrain winding-up proceedings being made against Pard outside of Singapore. The Pacific Andes group has struggled to repay debt since its relationships with banks soured last year. Fearing what it called “the threat of forced liquidation”, Singapore Exchange-listed Pard filed for protection under the Singapore Companies Act in July. Its creditors opposed that move, alleging that the firm was stalling to shield its units from attempts to investigate certain suspicious transactions….
… The moratorium is limited to Singapore and it does not apply to three other Pard units that Pacific Andes had sought to protect …. This is because Pacific Andes Enterprises and Parkmond Group, which trade seafood products and are incorporated in the British Virgin Islands, and Pacific Andes Food, a service provider based in Hong Kong, do not have strong enough connections to Singapore.
This leaves the door open for Pard’s creditors to file for liquidation of the firm anywhere else in the world where it has assets, such as Bermuda or Hong Kong.
Pard could apply for an injunction in these jurisdictions to restrain winding-up petitions on the basis that a restructuring is ongoing in Singapore, but the outcome is uncertain, given the Singapore court’s ruling“.
Watch this space for further developments!
UPDATE: The Strait Times now provides further insights by way of update. The urgent hearing on 30 September 2016 appears to be an application by bank creditors for the Supreme Court of Bermuda to appoint Provisional Liquidators pending final determination of a winding up petition.