B+H Ocean Carriers files plan, looks to liquidate assets, wind down

By Caroline Salls

Pittsburgh, Oct. 1 - B+H Ocean Carriers Ltd. filed its plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the overall objective of the plan is to liquidate and distribute all of its assets. A plan administrator will be appointed to continue to wind down the company's affairs, prosecute causes of action and resolve all outstanding claims not previously allowed or disallowed before the effective date.

The plan includes compromises and settlements with Scotiabank and Macquarie, as well as the B+H debtors' agreements to provide value to fund the payment of administrative, priority and general unsecured claims.

Creditor treatment

Treatment of creditors will include the following:

• Holders of administrative expense claims, priority claims and priority tax claims will be paid in full in cash;

• Macquarie will receive the remainder of its cash collateral after payments and reserves from the cash collateral have been made, as well as proceeds from the sale of the Searose G, RIP Hudner and Roger M. Jones vessels and related equipment;

• Holders of general unsecured claims will receive cash distributions from asset liquidation proceeds, except for proceeds that constitute Scotiabank or Macquarie collateral;

• In addition, unsecured creditors will be entitled to share in the proceeds of a Scotiabank-Sakonnet EBC arbitration claim;

• General unsecured creditors that either vote to accept the plan or abstain from voting and do not opt out of a claims release will share in a third-party release fund;

• General unsecured creditors that reject the plan or abstain and opt out of the release will not receive distribution from the release fund;

• BHO equity interests will be cancelled, and holders will receive no distribution; and

• Holders of non-BHO equity interests will receive the dividends to which they would be entitled under the absolute priority rule. The dividends will constitute unencumbered assets. The non-BHO equity interests will also be cancelled.

Hamilton, Bermuda-based shipbuilder B+H Ocean Carriers filed for bankruptcy on May 30. Its case number is 12-12356.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.