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China Fishery calls on judge for help as sale process drags

Claimants are seeking $152 million from CFG in the form of cash or shares of Copeinca from CFG.

William Brandt, Jr., Chapter 11 trustee for beleaguered China Fishery Group International (CFGI), has asked a New York bankruptcy court for permission to hire litigation and arbitration firm Quinn Emmanuel, citing a looming lawsuit and his own inability to find a bidder to purchase its Peruvian assets, even after contacting hundreds of individuals.

Brandt told the court on July 30 potential bidders are being scared away by a lawsuit by FTI Consulting, the liquidators in bankruptcy proceedings that allege CFG Peru benefited from the $152 million (€135.4 million) acquisition of Copeinca through fraudulent trading practices.

He added if FTI wins the lawsuit prior to the CFG Peru sale, "any damages that were awarded to plaintiffs would need to be added to the effective threshold price, making it even more challenging to find a buyer."

For over two years Brandt has been unable to sell the assets, which have a minimum sale threshold of $1.2 billion (€1.1 billion).

Brandt has asked for the judge to allow Quinn Emmanuel to defend CFG against the FTI lawsuit, and said the firm already acts as special litigator for him, and is familiar with the complexity of the ongoing China Fishery saga.

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