Marco Polo Seatrade lenders object to extension, look to file plan

By Caroline Salls

Pittsburgh, March 20 - Marco Polo Seatrade BV lenders Royal Bank of Scotland plc, Credit Agricole Corporate and Investment Bank and Norddeustsche Landesbank Girozentrale objected to the company's fifth exclusivity extension motion, asking the court for a chance to file their own plan of reorganization, according to a March 20 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The lenders said previous negotiations have not resulted in an agreed-upon plan.

"It is clear that the debtors are seeking a further extension of exclusivity as a leverage point," the lenders said in their objection.

"The only prospect for any meaningful progress in these Chapter 11 cases, short of lifting the automatic stay to permit the lenders to foreclose on their collateral, is to level the playing field so that the lenders, which are the true economic parties in interest, may propose a Chapter 11 plan for the debtors."

The lenders said preliminary discussions are underway with the company's unsecured creditors committee for support of a lender-sponsored plan.

In addition, the lenders said a two-month exclusivity extension would result in the continued deterioration of their collateral, which secures hundreds of millions of dollars owed by Marco Polo Seatrade.

A hearing is scheduled for April 3.

Marco Polo Seatrade, an Amsterdam-based vessel owner, filed for bankruptcy on July 29, 2011. The Chapter 11 case number is 11-13634.

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