Sea Containers files plan of reorganization; businesses to be transferred to newly formed company

By Caroline Salls

Pittsburgh, Aug. 1 - Sea Containers Ltd. filed its plan of reorganization and disclosure statement Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, the Sea Containers debtors will transfer their direct and indirect interests in their marine and land container leasing business to a new company.

In return, reorganized Sea Containers will receive the equity in the new company for distribution to plan creditors.

The new company will also lend cash to reorganized Sea Containers and will receive a repatriation note from the reorganized company.

The plan also establishes a non-debtor subsidiary reserve, to be funded by cash and new equity, which will be used to make payments to creditors of the non-debtor subsidiaries.

Treatment of creditors will include:

• Holders of other secured claims will recover 100% either in cash or through a full return of the collateral securing the claim;

• Holders of other priority claims will recover 100% in cash;

• Holders of other unsecured claims and pension schemes claims will recover 47% to 61% through an unsecured claim distribution;

• Sea Containers Caribbean Inc. interests will be reinstated; and

• Holders of Sea Containers Ltd. common stock interests will receive no distribution under the plan.

The company said it is in extensive negotiations on the terms of a potential exit financing facility.

The disclosure statement hearing is scheduled for Sept. 4, and the plan confirmation hearing will be held Nov. 10.

Sea Containers, a Hamilton, Bermuda-based provider of passenger and freight transport and marine container leasing, filed for bankruptcy on Oct. 15, 2006. Its Chapter 11 case number is 06-11156.

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