| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Offshore Marine Contractors, Inc. > News item |
Offshore Marine inks settlement, including $5.45 million vessel sale
By Caroline Salls
Pittsburgh, April 9 – Offshore Marine Contractors, Inc. requested court approval of a settlement reached with Caterpillar Financial Services and a group of guarantors and the related sale of Offshore’s Raimy Eymard vessel, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Louisiana.
Under the agreement, JAD Construction Ltd. will pay $5.45 million for the vessel.
Offshore Marine said Caterpillar has a first-priority security interest in the vessel and filed a $7.82 million secured claim against the company. The claim is guaranteed by the guarantors who are party to the settlement and are also Offshore Marine’s shareholders.
The proposed settlement includes the abatement of Caterpillar’s court-awarded adequate protection payments until June 30 or the closing of the sale of the vessel, as well as Caterpillar’s agreement to take no adverse action against Offshore Marine and the guarantors until the earlier of May 15 or the sale closing.
Upon Caterpillar’s receipt of the sale proceeds, its claim will be allowed and it will support Offshore Marine’s Chapter 11 plan. The company said it will file the plan “in short order.”
If the private sale of the vessel is converted to a competitive bidding process over the parties’ objections, Offshore Marine will pay a 7% break-up fee to JAD.
An April 20 hearing has been requested.
Cutoff, La.-based Offshore Marine provides offshore, self-propelled, self-elevating liftboats for the petroleum exploration and transportation industries. The company filed bankruptcy on Dec. 4 under Chapter 11 case number 19-13253.
© 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.