Superior Offshore shareholders appeal plan confirmation, request stay

By Caroline Salls

Pittsburgh, Feb. 5 - Superior Offshore International, Inc. shareholders Louis E. Schaefer Jr. and Schaefer Holdings, LP appealed the court order confirming the company's plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

In addition, the appellants asked the court to stay the plan confirmation order, pending outcome of the appeal.

According to the stay motion, the confirmed plan does not specify how the distribution between unsecured securities claims and common stock will be made, and the plan violates the absolute priority rule because a class junior to the unsecured class will receive a property right even though the unsecured class is classified as impaired.

As previously reported, the plan was confirmed on Jan. 28. The company has said it expects to emerge from bankruptcy on Feb. 11, unless the confirmation is stayed.

A hearing on the stay motion is scheduled for Feb. 9.

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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