Court grants Barramundi time to fix its finances

A Singapore court has granted fish farming business the Barramundi Group four months’ protection from creditors, allowing it to get its financial house in order. The company had asked for more time.

Barramundi, which farms the fish of the same name, had asked the High Court of the Republic of Singapore for a “Moratorium Order” which would give it a period of six months’ protection against a winding-up order or the appointment of external administrators.

Yesterday today, the court, under section 64 of the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”), granted the company a moratorium period of just four months, commencing from the date of application. Any extension will have to be applied for and granted at the discretion of the court.

Barramundi, which is listed on the Euronext stock exchange, said: “The company will take this time to carry on negotiations for restructuring funding, as well as a compromise of its debts with creditors. Existing shareholders may reach out for more information regarding these plans.”

The board is working with Barramundi’s financial adviser, KordaMentha Pte Ltd, on a financial reconstruction programme. Last year the group was forced to drop plans for expansion in Australia, selling its operations that country to Cooke subsidiary Tassal.

Now, Barramundi is looking to invest in sea and land based facilities in Brunei – but it will need to tackle its balance sheet issues in order to do that.