Barramundi Group seeks six-month breathing space

Singapore-based Barramundi Group has applied for a form of insolvency protection while the company attempts to carry out financial reconstruction.

On 11 October the fish farming group made an application to 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.

The Moratorium would also protect Barramundi against any “execution, distress or other legal process against any property of the company” unless sanctioned by the Singapore court.

Barramundi, which is listed on the Oslo Børs, said: “The Company requires the reliefs provided by the Moratorium Order to protect it from creditor enforcement action, while giving it breathing space to carry on negotiations for a restructuring and compromise of its debts with its creditors.”

It also announced that the group has obtained a bridging loan of SGD 400,000 (£234,000) from a shareholder. The loan, the company said, will help to finalise restructuring plans.

In September, Barramundi announced that it would be embarking on a financial reconstruction programme with the help of its financial advisor, KordaMentha Pte Ltd.

Last year the group’s Australian farms were placed into administration after ambitious expansion plans had to be abandoned. The Australian operations were subsequently sold to Tassal, a Cooke subsidiary. Barramundi is now planning to invest in sea farming, and a RAS (recirculating aquaculture system) site, in Brunei.

Meanwhile the Oslo Børs has placed the Barramundi Group in what it calls the “Recovery Box”, reserved for those companies “for which the Issuer is subject to circumstances that make pricing of the securities particularly uncertain”.

The Barramundi Group farms the warm-water fish of the same name, also known as Asian sea bass.