Superior Offshore equity holders ask court to end exclusivity to allow 'ignored' committee to file plan

By Caroline Salls

Pittsburgh, Nov. 26 - Superior Offshore International, Inc.'s official committee of equity security holders asked the U.S. Bankruptcy Court for the Southern District of Texas to terminate the company's exclusivity to file a plan of liquidation, calling Superior's proposed plan "ill-conceived and unconfirmable," according to a Tuesday court filing.

According to the motion, recent events and the terms of the joint plan have led the committee to believe that Superior Offshore's primary goal is to disenfranchise equity security holders while entrenching current company representatives and creditors.

As a result, the equity committee said it is prepared to propose a competing plan that properly aligns the post-confirmation control of the company.

"The true interested constituency in this case is the equity security holder class," the committee said in the motion

The committee said the company and its professionals have repeatedly ignored the committee over the last few months.

"The filing of the joint plan by the debtor and the creditors' committee is the latest and perhaps most egregious manifestation of the debtor's inability or refusal to recognize the real constituency in interest in this case," the committee said in the motion.

"This motion goes to core of Chapter 11 bankruptcy, which is to promote consensus and fair treatment of all creditors and equity holders.

"The equity committee has not been afforded a reasonable opportunity whatsoever to negotiate with the debtor and the creditors' committee on a consensual plan because those parties have consistently ignored the equity committee's suggestions and proposals."

A hearing is scheduled for Dec. 8.

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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