Pacific Andes&rsquo fishing arm China Fishery Group has asked holders of Copeinca&rsquo s $250 million bond to approve a change to their terms  that would see  Copeinca guarantee up to $1.2  billion of debt belonging to China Fishery.

This would include $250m in  new debt  that might  be issued by China Fishery.

The request was sent in a July 17 notice to Copeinca bondholders.

If the request receives approval from 50% of bondholders by July 30, China Fishery will be able to transfer the assets of the Peruvian fishmeal producer Copeinca, which it acquired in September 2013, to China Fishery Peru.

Copeinca will then become guarantor of  up to $1.2bn in debt of China Fishery, including $650m of the new $750m loan issued in March, $300m in existing China Fishery notes and up to another $250m of senior notes or debt that might be issued by China Fishery.

&ldquo Currently, the terms of the Copeinca bonds do not allow China Fishery to transfer assets without their approval. The guarantee of the bonds now of Copeinca is by all of Copeinca&rsquo s current subsidiaries,&rdquo a US Copeinca bondholder told Undercurrent News.

&ldquo The documents do not let Copeinca guarantee anyone else, China Fishery wants to change that and let Copeinca guarantee the subsidiaries of China Fishery  Peru.&rdquo

&ldquo They want bondholders to agree to amend the terms of the original issue (the prospectus) to guarantee $1.2bn of China Fishery existing bonds and new notes.&rdquo

This bondholder was in disbelief over the request.  &ldquo Seriously, who is going to approve of that. I sure hope no one.&rdquo

In its document, China Fishery said the request  would enable it to grow and ink financing deals it could not  otherwise pursue. The change would also allow certain China Fishery subsidiaries including its Peru division to support the repayment of the Copeinca notes &mdash and vice versa, would enable Copeinca to support China Fishery debts, it said.

It then added Copeinca would benefit from the deal thanks to a &ldquo consolidated financing platform&rdquo and &ldquo enhanced liquidity&rdquo .

The document said the move would allow it to transfer Copeinca&rsquo s Copeinca International subsidiary to China Fishery Peru, and allow it to merge or transfer Copeinca assets &mdash including by way of liquidation &mdash to China Fishery Peru.

In a note, Fitch said the  request would not affect its rating of China Fishery and said its bonds, due 2019, would not be impacted if the request is adopted.

&ldquo The proposed amendments will pave the way for China Fishery to consolidate its Peru operations under its main Peru subsidiary, CFG Peru,&rdquo said Fitch.

&ldquo The proposed amendments will not alter the key business terms, such as the interest rate or maturity date, of the  $250m Copeinca bonds due 2017.

&ldquo Fitch does not see any changes to its view on China Fishery if the proposed indenture changes are adopted because the agency already expects China Fishery&rsquo s Peru operations to eventually be fully integrated and considers Copeinca ASA&rsquo s bonds as part of China Fishery&rsquo s debts.&rdquo