Barramundi Group sees 'breathing space' for restructuring
Struggling fish farmer Barramundi Group has applied for a form of bankruptcy protection to give it “breathing space to carry on negotiations for a restructuring and compromise of its debts with its creditors”.
In a stock exchange announcement, the Oslo-listed company said it had today asked Singapore’s High Court for a six-month Moratorium Order under section 64 of the Insolvency, Restructuring and Dissolution Act.
The order would prevent the company being wound up, or having a receiver or manager appointed over any of its property or undertakings.
It would also prevent any legal action being taken for repossession of goods held by the company or its property without approval from the High Court.
£234,000 loan
Barramundi Group stated that in support of the Moratorium Order and ongoing restructuring, it has obtained a bridging loan of SGD 400,000 (£234,000 / NOK 3.3 million) from a shareholder. It said the loan will aid the company with operational runway into the Moratorium Order and finalisation of its restructuring plans.
In the summer, Barramundi Group was placed in the Oslo Stock Exchange’s Recovery Box and Penalty Bench. The Recovery Box is a special compartment where the exchange can place shares when the issuer is subject to circumstances that make pricing of the shares particularly uncertain. The Penalty Bench is a special compartment where the shares of issuers that fail to comply with the exchange’s rules are placed.
Barramundi Group has operations in Singapore and Brunei, but most of its fish came from a subsidiary in northwest Australia, Marine Produce Australia (MPA).
MPA went into receivership in May last year, and was later sold to salmon and shrimp farmer Tassal, owned by Canadian seafood heavyweight Cooke.
