Morgen Crow, executive director of Coastal Villages Region Fund, has confirmed the deal saying that under the agreement, Coastal Villages gave up its 46 percent ownership in American Seafoods in exchange for the vessel and fishing rights assets. American Seafoods is currently trying to negotiate a multi-million dollar refinancing deal.
American Seafoods said in a separate announcement May 10 that it has completed a refinancing of all the outstanding debt of American Seafoods Group LLS and ASG Consoliated LLC, the direct parent of American Seafoods Group. Bernt O. Bodal, chief executive officer of American Seafoods, confirmed that his firm had redeemed all of the outstanding equity interests of Coastal Villages Region Fund, in exchange for the vessels and certain fishing rights.
It is reported that all of the Western Alaska Community Development Quota corporations have greatly increased their ownership of pollock vessels and other fishery assets by leveraging their CDQ allocations into ownership and investment. According to the company the new pollock and cod businesses would complement Coastal Village’s existing Kuskokwim salmon operation and Bering Sea crab business. With the new vessels and new processing capacity, Coastal Villages will catch, process and sell more than $75 million annually of high quality Alaska seafood.
Crow said that over the past decade, Coastal Villages has achieved outstanding financial returns, while learning about the fishing industry and providing significant economic opportunities for residents of the CDQ group’s 20 member villages. Neil Rodriguez, regulatory manager for Coastal Villages, said that it was a success by all standards and now provides a market for fish harvested by some 600 salmon permit and 200 halibut permit holders.
