Sheehan Pipe Line partnership interest CEO’s conversion motion denied

By Caroline Salls

Pittsburgh, Nov. 15 – Sheehan Pipe Line Construction Co. partnership interest president and chief executive officer R. David Sheehan Jr.’s motion for conversion of the company’s Chapter 11 bankruptcy case to Chapter 7 was denied Tuesday by the U.S. Bankruptcy Court for the Northern District of Oklahoma.

“Under any analysis, there is no reason to justify this Chapter 11 estate remaining open and accruing administrative expenses,” Sheehan said in his motion. “Further, there is no reason to conclude the administration of this Chapter 11 estate under the plan when the same may be accomplished more efficiently under the provisions of Chapter 7.”

Sheehan said substantially all of the company’s assets have been sold and about 95% of the proceeds from those sales have already been distributed to parties holding liens.

Sheehan said the only remaining tangible assets are miscellaneous office equipment/furniture to be sold under an existing court order and bank accounts holding roughly $2 million in sale proceeds.

“[The company’s] plan is not a plan of reorganization or liquidation, but merely a complex, expensive vehicle to merely litigate claims for recovery of money, administer the proofs of claim and distribute the cash available,” Sheehan said.

“A Chapter 7 trustee can easily prepare an analysis of claims, distribute funds, object to creditor claims, pursue claims on behalf of the estate and sort out the few remaining asserted liens and other security interests against estate assets.”

Sheehan Pipe Line, a Tulsa, Okla.-based pipeline construction company, filed bankruptcy on April 15, 2016. The Chapter 11 case number is 16-10678.

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