It’s unclear how the sale will affect King Cove, which relied on the processing facility as its main economic driver until it closed in January.
A Washington state judge approved a deal on Thursday giving the assets of Peter Pan Seafoods to the company’s former co-owner Rodger May, a decision that follows months of controversy over the seafood processing company, which ceased operations this year.
May placed the winning bid for the company’s assets at auction last month, but the sale wasn’t approved until Thursday’s hearing, when King County Judge Steven Olsen signed the motion to approve the $37.3 million sale, which includes processing plants in Port Moller, Dillingham and King Cove.
“I really haven’t heard anybody say that the receiver failed to comply with that order approving the sale,” Olsen said.
Peter Pan Seafood Company was placed into a court-ordered receivership back in April at the request of Wells Fargo, which pointed to more than $60 million in debt owed by the Alaskan processing company. A receivership is a process similar to bankruptcy, but intended to protect a company’s lender. Both Wells Fargo and the court-appointed receiver, the Los Angeles-based Stapleton Group, supported the deal proposed by May.
However, more than 90 Alaska fishermen in August signed a letter that opposed selling Peter Pan’s assets back to May, saying that May had broken the fishing community’s trust by not paying fishermen.
“Mr. Rodger May and co-owners have done irreparable harm to the many people and their families that make their living from the commercial fisheries on the Alaska Peninsula,” they wrote. “There are still many fishermen that have not been paid for fish they delivered as well as vendors and tenders not being paid for goods and services provided.”
It’s unclear how the sale will affect King Cove, which relied on the processing facility as its main economic driver until it closed in January.
May acquired Peter Pan back in 2020 with the backing of California-based RRG Capital Management and McKinley Capital Management, which used funds from the Alaska Permanent Fund Corporation’s in-state investment program.
May attended the meeting on Zoom but did not speak during the hearing. May also did not respond to a request for comment from KUCB.
Rodger May, an entrepreneur and fish trader, narrowly beat out another industry player, Silver Bay Seafoods, with his $37.3 million bid. The sale must still be approved by a Seattle court.
One of the original investors in a troubled Alaska seafood company has narrowly outbid competitor Silver Bay Seafoods in an auction for the firm’s assets — including a major processing plant in the Alaska Peninsula village of King Cove.
Rodger May, an entrepreneur and fish trader, bid $37.3 million for the assets of Peter Pan Seafood, including two other processing plants — one in the Bristol Bay hub town of Dillingham and another in a remote part of the Alaska Peninsula called Port Moller.
May’s bid was $257,000 higher than the bid offered by Silver Bay Seafoods, a major Alaska seafood company that’s expanded rapidly in recent years.
The sale of Peter Pan, which operates primarily in Alaska with a business headquarters in Washington, isn’t final. A confirmation hearing in Peter Pan’s receivership case — a bankruptcy-like proceeding overseen by a Seattle court — is scheduled for Oct. 3.
May’s seafood trading company is one of three original investors who bought Peter Pan from a Japanese conglomerate in 2020. The other two investors are private funds, one run by Anchorage-based McKinley Capital Management and another led by Los Angeles-based RRG Capital Management.
May’s winning bid was summarized in a 115-page document filed in the case by the Los Angeles-based financial managers, the Stapleton Group, charged with managing Peter Pan’s assets through the receivership. It says May will pay $25.3 million of the purchase price in cash, with the rest to come from a credit to account for $12 million that May previously lent the company.
The document — a brief formal notice to the court with along with a detailed purchase and sale agreement — leaves an array of unanswered questions. Those include whether and when fishermen owed money by Peter Pan could be paid off with proceeds from the sale.
The document also does not say whether any of the proceeds will go toward paying McKinley Capital Management, whose investment in Peter Pan was partially financed by the Alaska Permanent Fund Corp. — the agency that manages the state’s $79 billion oil wealth endowment.
The sale documents also do not commit May to reopening the aging King Cove plant, which has been shuttered for months and is valued at just $200,000 by the sale agreement.
May also may face challenges in recruiting fishermen to sell their catch to Peter Pan’s plants.
He’s been criticized in recent weeks by former Peter Pan fishermen, some of whom have said they went unpaid by the company and filed liens against it.
Dozens of fishermen wrote an open letter last month saying that trust with May and his business “has been permanently broken” and that they “will not deliver fish or be in a business relationship” with him again.
May did not immediately respond to a request for comment, and neither did an official from the Stapleton Group.
Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.
Sand Point School Open House
Thursday, Sept. 12, from 5:00-6:00 PM
– Student work is displayed in the halls and classrooms Scavenger hunt fun!
– Austin Roof will be here to help with the Remind APP
– Dannielle Carlson will be available for FAFSA Questions & more
NOTICE OF ELECTION
THE CITY OF SAND POINT 2024 GENERAL ELECTION WILL BE HELD
TUESDAY, OCTOBER 1, 2024
8:00 AM TO 8:00 PM
Municipal Building, Room 11
(City Council Chambers)
For the purpose of electing the following:
CITY COUNCIL SEAT E………………Three (3) Year Term
CITY COUNCIL SEAT F………………Three (3) Year Term
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APPLICATION INSTRUCTIONS FOR ABSENTEE VOTING:
Absentee Voting In-Person at the City Clerk’s Office will be open in September 16, 2024 through
September 30, 2024 at 12:00 pm.
Written Absentee Voting By-Mail Ballot Requests will be accepted on September 11, 2024
through September 27, 2024. All By-Mail Ballots must be received by October 4, 2024.
To obtain an application for absentee voting or if you have any other questions, contact the City
Clerk using the information below.
City Clerk
P.O. Box 249
Sand Point, AK 99661
E-mail: cityclerk@sandpointak.org Phone: (907)383-2696 Fax: (907)383-2698
Ravn Alaska, one of only two commercial airlines offering regular passenger service from Anchorage to the Aleutian Islands, says it’s suspending scheduled service to Unalaska, Cold Bay and Sand Point, effective Aug. 16.
The company announced the decision in an email to customers. A statement posted to the company’s website Tuesday afternoon said the airline was looking to focus on other Alaska destinations.
Ravn is still offering flights from Anchorage to Homer, Valdez, St. Paul Island and Unalakleet.
“This change comes as part of a broader initiative to optimize operations and ensure long-term sustainability and growth for the airline. By reallocating resources and capacity, Ravn Alaska/New Pacific Airlines aims to enhance service reliability and customer satisfaction across its core network,” the statement said.
Ravn representatives declined interview requests.
“This was not an easy decision, but it is a necessary step in our long-term strategy to strengthen the overall success of our airline and this shift allows us to concentrate on routes where we can make the most significant impact,” the company said.
The company’s frequently asked questions page on its website says the airline will issue refunds to ticket holders, which will be processed by the end of the month.
“Refunds will be processed within 14 business days from the suspension date [Aug. 16],” the page says. “The exact time frame may vary depending on your bank or payment method.”
New Pacific Airlines, Ravn’s sister brand, announced in April that it would halt scheduled service to focus on chartering its Boeing 757.
Air travel to the Aleutians has been mired in turmoil since a fatal accident in 2019 led to the bankruptcy of the region’s previous carrier RavnAir. The new Ravn Alaska began operating in the region in 2020 after several months without a commercial airline serving the Aleutians.
Ravn’s decision to pare back its routes leaves Aleutian Airways as the only airline with scheduled passenger flights from Anchorage to Unalaska, Sand Point and Cold Bay.
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Voters must apply by 8/10 if voting by mail, and they can apply to use electronic and absentee voting 8/5 through 8/19.
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