A King County Superior Court judge in the U.S. state of Washington has denied a stay on the sale of Peter Pan Seafoods’ assets to Rodger May as the matter continues to make its way through court.
May won an auction to acquire Peter Pan Seafoods’ assets with a bid of more than USD 37.32 million (EUR 34.47 million) for three processing facilities, the company’s groundfish quota, and other assets. The assets, auctioned on 16 and 17 September, were up for grabs after the company entered receivership in April 2024 at the request of Wells Fargo, its largest creditor.
A judge ultimately approved the sale in early October after other major creditors of the company objected to May’s successful bid. John Ketchum, an investor owed USD 10 million (EUR 9.2 million) by Peter Pan, backed a competing bid by Silver Bay Seafoods that was only 0.05 percent less than May’s.
Silver Bay Seafoods and May entered a bidding war over the assets of Peter Pan Seafoods, and even won a bid for the company’s frozen seafood assets. Silver Bay’s bid was also supported by fishermen that formerly sold their catch to Peter Pan, and the company has already acquired other Peter Pan assets.
An attorney for Ketchum wrote Silver Bay’s push to purchase Peter Pan’s assets would avoid the legal wrangling that is now ongoing.
“Moving on from May to the Silver Bay bid – which is what the receiver should have done at the auction – eliminates the issues now before the court and avoids the litigation that assuredly will follow from the baffling path the receiver has chosen here,” the attorney said.
Ketcham also pushed for a stay on the sale of the facility to Rodger May – but King County Superior Court Commissioner Jonathon Lack ruled that the order was valid and the sale could proceed.
According to court documents, Ketchum posted a USD 250,000 (EUR 230,000) supersedeas bond with the court on 4 October following the sale, but did not file a motion to stay the order. Supersedeas bonds allow defendents to delay payment of a judgement while an appeal is being heard, and are typically required during the appeal of a judgement.
On 9 October, May filed his own motion to invalidate the supersedeas notice, which was in turn followed up with a 14 October motion for revision by OBI Seafoods.
Lack ruled that Ketchum’s bond did not create an automatic stay on the sale, and that because he had not yet filed a motion to stay with the court of appeals, there was no stay issued on the sale.
The matter isn’t finished with the court, however …
