Sheehan Pipe Line bankrupt, looks to sell equipment for $29.5 million

By Caroline Salls

Pittsburgh, April 20 – Sheehan Pipe Line Construction Co. filed Chapter 11 bankruptcy on April 15 in the U.S. Bankruptcy Court for the Northern District of Oklahoma.

Sheehan said it entered into a stalking horse agreement under which Ritchie Bros. Auctioneers (America), Inc. would pay $29.5 million for substantially all of the company’s equipment.

If Ritchie is not the high bidder for the equipment, Sheehan would pay it an $885,000 breakup fee.

The stalking horse agreement allows Sheehan to use a $1.5 million deposit from Ritchie to protect and preserve the equipment and facilitate the sale.

Initial competing bids must exceed the stalking horse bid by at least $3 million. Subsequent bids must be made in minimum increments of $500,000.

According to court documents, Sheehan has $50 million to $100 million in both assets and debt.

The company’s largest unsecured creditors are:

• Cleveland Brothers of Boston, with an $8.88 million materials, goods and services claim;

• Arnold’s Custom Seeding, LLC of Keenesburg, Colo., with a $5.24 million materials, goods and services claim;

• Southeast Directional Drilling LLC of Casa Grande, Ariz., with a $3.27 million materials, goods and services claim;

• Western Supplies Inc. of Wichita Falls, Texas, with a $2.32 million materials, goods and services claim;

• Ohio-West Virginia Excavating of Powhatan Point, Ohio, with a $2.19 million materials, goods and services claim;

• Supreme Industries Inc. of Harwinton, Conn., with a $2.05 million materials, goods and services claim;

• Cecil L. Walker Machinery of Chicago, with a $1.8 million materials, goods and services claim;

• Cross Country Pipeline Supply Co. of Kansas City, Mo., with a $1.71 million materials, goods and services claim;

• McK Construction of Carnegie, Pa., with a $1.51 million materials, goods and services claim; and

• Fabick Tractor Co. of St. Louis, with a $1.25 million materials, goods and services claim.

The company is represented by McDonald, McCann, Metcalf & Carwile, LLP.

Sheehan is a Tulsa, Okla.-based pipeline construction company. The Chapter 11 case number is 16-10678.

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