China Fishery : Update On Chapter 11 Proceedings Before The Us Bankruptcy Court

CHINA FISHERY GROUP LIMITED

(Incorporated in the Cayman Islands)

Update on Chapter 11 Proceedings before the US Bankruptcy Court

The board of directors (the "Board") of China Fishery Group Limited (the "Company") wishes to provide an update on Chapter 11 proceedings currently before the United States Bankruptcy Court in New York. Reference is made to the Board's announcement of 3 March 2021 concerning a press release issued by an ad hoc group of creditors of China Fishery Group (the "Group").

On 16 March 2021, two creditors of the Group, Burlington Loan Management DAC and Monarch Alternative Capital LP, filed in the US Bankruptcy Court a Disclosure Statement and Chapter 11 Plan (the "US Filings") in respect of Chapter 11 Debtors (as defined in the US Filings), CFG Peru Investments Pte. Limited and Smart Group Limited. The US Filings are attached. While the directors are currently still examining the implications of the US Filings and any appropriate action that should be taken, the Board wishes to bring them to the attention of shareholders as soon as practicable.

The Board would like to confirm that these US Filings have been made at the initiative of the two creditors concerned and not in conjunction with the Board.

The Company will announce further updates on these proceedings as significant developments arise.

By Order of the Board

Ng Puay Yee (Jessie)

Executive Director and Chief Executive Officer

19 March 2021

THIS DISCLOSURE STATEMENT IS BEING SUBMITTED FOR APPROVAL BUT HAS NOT YET BEEN APPROVED BY THE BANKRUPTCY COURT. THIS IS NOT A SOLICITATION OF ACCEPTANCE OR REJECTION OF THE PLAN. ACCEPTANCES OR REJECTIONS MAY NOT BE SOLICITED UNTIL A DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT. THE INFORMATION IN THIS DISCLOSURE STATEMENT IS SUBJECT TO CHANGE. THIS DISCLOSURE STATEMENT IS NOT AN OFFER TO SELL ANY SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY ANY SECURITIES.

Patrick J. Nash, Jr., P.C. (admitted pro hac vice)

Gregory F. Pesce (admitted pro hac vice)

Heidi M. Hockberger (pro hac vice pending)

KIRKLAND & ELLIS LLP

300 North LaSalle

Chicago, Illinois 60654 Telephone: [phone] Facsimile: [phone]

Counsel to the Creditor Plan Proponents

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

)

In re:

) )Case No. 16-11895 (JLG)

CHINA FISHERY GROUP LIMITED (CAYMAN), et al.,1

) Chapter 11 )

Debtors.

In re:

CFG PERU INVESTMENTS PTE. LTD. (SINGAPORE),

Debtor.

In re:

SMART GROUP LIMITED (CAYMAN),

Debtor.

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

(Jointly Administered)

Case No. 16-11914 (JLG)

Chapter 11

(Jointly Administered)

Case No. 16-11910 (JLG)

Chapter 11

(Jointly Administered)

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The debtors in these chapter 11 cases are China Fishery Group Limited (Cayman), Pacific Andes International Holdings Limited (Bermuda), N.S. Hong Investment (BVI) Limited, South Pacific Shipping Agency Limited (BVI), China Fisheries International Limited (Samoa), CFGL (Singapore) Private Limited, Chanery Investment Inc. (BVI), Champion Maritime Limited (BVI), Growing Management Limited (BVI), Target Shipping Limited (HK), Fortress Agents Limited (BVI), Ocean Expert International Limited (BVI), Protein Trading Limited (Samoa), CFG Peru Investments Pte. Ltd. (Singapore), Smart Group Limited (Cayman), and Super Investment Limited (Cayman).

KE 74598547

DISCLOSURE STATEMENT FOR THE

CREDITOR PLAN PROPONENTS' CHAPTER 11 PLAN FOR CFG PERU INVESTMENTS PTE. LTD. (SINGAPORE) AND SMART GROUP LIMITED (CAYMAN)2

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The debtors in these chapter 11 cases subject to the Plan (as defined herein) are CFG Peru Investments Pte. Ltd. and Smart Group Limited (the "Plan Debtors"). The notice address of the plan proponents for purposes of these chapter 11 cases is: Creditor Plan Proponents, c/o Kirkland & Ellis LLP, 300 North LaSalle, Chicago, Illinois 60654, Attn.: Patrick J. Nash, Jr., P.C., Gregory F. Pesce, and Heidi M. Hockberger.

IMPORTANT INFORMATION ABOUT THIS DISCLOSURE STATEMENT3

THE DEADLINE TO VOTE ON THE PLAN IS

[May 21], 2021 at 4:00 p.m. (prevailing Eastern Time)

THE DEADLINE TO OBJECT TO THE PLAN IS [May 21], 2021 at 4:00 p.m. (prevailing Eastern Time)

FOR YOUR VOTE TO BE COUNTED, YOUR BALLOT MUST BE ACTUALLY RECEIVED BY

THE SOLICITATION AGENT ON OR BEFORE THE VOTING DEADLINE AS DESCRIBED

HEREIN.

THE CREDITOR PLAN PROPONENTS ARE PROVIDING THE INFORMATION IN THIS DISCLOSURE STATEMENT TO HOLDERS OF CLAIMS OR INTERESTS FOR PURPOSES OF SOLICITING VOTES TO ACCEPT OR REJECT THE CREDITOR PLAN PROPONENTS' CHAPTER 11 PLAN FOR CFG PERU INVESTMENTS PTE. LTD. (SINGAPORE) AND SMART GROUP LIMITED (CAYMAN). NOTHING IN THIS DISCLOSURE STATEMENT MAY BE RELIED UPON OR USED BY ANY ENTITY FOR ANY OTHER PURPOSE. BEFORE DECIDING WHETHER TO VOTE FOR OR AGAINST THE PLAN, EACH HOLDER ENTITLED TO VOTE SHOULD CAREFULLY CONSIDER ALL OF THE INFORMATION IN THIS DISCLOSURE STATEMENT, INCLUDING THE RISK FACTORS DESCRIBED IN ARTICLE VIII HEREIN. IN THE EVENT OF ANY INCONSISTENCY BETWEEN THE DISCLOSURE STATEMENT AND THE PLAN, THE RELEVANT PROVISIONS OF THE PLAN WILL GOVERN.

THE CREDITOR PLAN PROPONENTS URGE HOLDERS OF CLAIMS WHOSE VOTES ARE BEING SOLICITED TO VOTE TO ACCEPT THE PLAN. THE CREDITOR PLAN PROPONENTS URGE EACH HOLDER OF A CLAIM TO CONSULT WITH ITS OWN ADVISORS WITH RESPECT TO ANY LEGAL, FINANCIAL, SECURITIES, TAX, OR BUSINESS ADVICE IN REVIEWING THIS DISCLOSURE STATEMENT, THE PLAN, AND THE PROPOSED TRANSACTIONS CONTEMPLATED THEREBY. FURTHERMORE, THE BANKRUPTCY COURT'S APPROVAL OF THE ADEQUACY OF THE INFORMATION CONTAINED IN THIS DISCLOSURE STATEMENT DOES NOT CONSTITUTE THE BANKRUPTCY COURT'S APPROVAL OF THE PLAN.

THIS DISCLOSURE STATEMENT CONTAINS, AMONG OTHER THINGS, SUMMARIES OF THE PLAN, CERTAIN STATUTORY PROVISIONS, CERTAIN EVENTS IN THE CHAPTER 11 CASES, AND CERTAIN DOCUMENTS AND/OR ARRANGEMENTS THAT WILL IMPLEMENT THE TRANSACTIONS CONTEMPLATED BY THE PLAN DESCRIBED HEREIN. ALTHOUGH THE CREDITOR PLAN PROPONENTS BELIEVE THAT THESE SUMMARIES ARE FAIR AND ACCURATE, THESE SUMMARIES ARE QUALIFIED IN THEIR ENTIRETY TO THE EXTENT THAT THEY DO NOT SET FORTH THE ENTIRE TEXT OF SUCH DOCUMENTS OR STATUTORY PROVISIONS OR EVERY DETAIL OF SUCH ANTICIPATED EVENTS. IN THE EVENT OF ANY INCONSISTENCY OR DISCREPANCY BETWEEN A DESCRIPTION IN THIS DISCLOSURE STATEMENT AND THE TERMS AND PROVISIONS OF THE PLAN OR ANY OTHER DOCUMENTS INCORPORATED HEREIN BY

3

Capitalized terms used but not defined in this disclaimer shall have the meaning ascribed to them elsewhere in this Disclosure Statement.

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