Superior Offshore equity holders ask court to reconfigure official committee

By Caroline Salls

Pittsburgh, Nov. 7 - Superior Offshore International, Inc.'s largest equity holders Louis E. Schaefer Jr. and Schaefer Holdings, LP asked the U.S. Bankruptcy Court for the Southern District of Texas to reconfigure the company's official committee of equity security holders, citing a conflict of interest on the current committee, according to a Thursday court filing.

"The equity committee as currently constituted suffers an inherent conflict of interest that necessarily undermines its fiduciary duty to the equity owners," the motion said.

"That conflict is intruding on every deliberation and every action the equity committee is taking."

The Schaefer parties said the committee conflict needs to be resolved quickly because events are occurring virtually every day in Superior's bankruptcy case, including plan preparations, "on which the equity committee's conflict has a deleterious effect."

In addition, the Schaefer parties said discovery-type information is being provided to the committee, that, because a class action plaintiff and class action plaintiff's counsel are part of the committee's membership, is actually violating a discovery stay.

A hearing is scheduled for Nov. 17.

Superior Offshore, a Houston-based provider of subsea construction and commercial diving services to the crude oil and natural gas exploration and production industries and gathering and transmission industries, filed for bankruptcy on April 24, 2008. Its Chapter 11 case number is 08-32590.

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