Offshore Marine Contractors Chapter 11 reorganization plan confirmed

By Caroline Salls

Pittsburgh, Aug. 7 – Offshore Marine Contractors Inc.’s plan of reorganization was confirmed Thursday by the U.S. Bankruptcy Court for the Eastern District of Louisiana.

According to the disclosure statement for the plan, Offshore Marine’s restructuring will leave its business intact and substantially de-levered, providing for the reduction of a substantial amount of debt and the issuance of new equity interests to entities making a secured creditor contribution.

Under the plan, administrative claims, priority non-tax claims and priority tax claims will be paid in full.

Bluehenge will retain its rights in cash collateral constituting Lucas proceeds in the amount of $2.56 million, and Offshore Marine will make monthly payments to Bluehenge of interest at the rate of 3.25% in exchange for its secured claim.

Of the remaining $21.43 million of the total allowed secured claim, the company will pay $17.7 million, and the remaining $3.74 million will constitute a secured creditor contribution, entitling Bluehenge to a share of the new equity interests.

The remaining $17.2 million of claims will be treated as a general unsecured claim.

Caterpillar’s collateral will be sold for $5.45 million, and Caterpillar will receive the sale proceeds in exchange for its secured claim under a sale alterative treatment. Meanwhile, under a retention alternative treatment, Caterpillar’s collateral will be valued by the court, and the allowed claim will bear interest at the Prime rate plus 200 basis points and paid in equal monthly installments based on a 20-year amortization schedule.

Caterpillar may elect to convert a portion of its allowed secured claim to a secured creditor contribution.

MRB will maintain its liens in the collateral securing its term loan claims. Within 10 days of the plan confirmation order, MRB will apply its term note 2 collateral in full payment of that note, with any excess proceeds to be applied against MRB term note 1.

Offshore Marine will make monthly interest-only payments on the outstanding balance of MRB term note 1 at a rate of 8% for the 18 months following the plan effective date and will provide principal and interest payments on any remaining outstanding balance thereafter at 8% interest, amortized over 60 months.

The company will pay the United Security Bank secured claim in monthly payments based on a 20-year amortization schedule, plus 6.75% interest.

Other secured claims will be paid in full or reinstated.

Convenience class unsecured claims will be paid in full.

Unsecured trade claims will be paid in eight quarterly installments.

Holders of other unsecured claims will receive a share of a class 7 fund.

The holder of the Bourg subordinated claim will receive no distribution.

Existing equity interests will be cancelled and extinguished.

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, 2019 under Chapter 11 case number 19-13253.

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