Seabras 1 Bermuda, Seabras 1 USA file bankruptcy to restructure parent

By Caroline Salls

Pittsburgh, Dec. 23 – Parent company Seabras 1 Bermuda Ltd. and operating company Seabras 1 USA LLC filed Chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court for the Southern District of New York to ensure an orderly process for completing a new restructuring plan for the parent company while ensuring that customers will continue to be served as usual, according to a Seaborn Networks news release.

Upon emergence from this process, Seabras said it expects to be well-positioned to aggressively pursue a combined business plan independent of the overhang caused by the parent’s current challenges.

The parent company said it expects to file its proposed restructuring plan in the near term and to work closely with its secured lenders to fashion a plan to address its debt situation and emerge as a vibrant, healthy business.

The companies said they do not anticipate, nor do they wish to explore, any sale efforts through the bankruptcy processes. The companies expect to complete the process within the next few months and to emerge within the second quarter of 2020, subject to all required approvals.

Seaborn Networks, which operates the Seabras business and is an indirect shareholder, is not part of the filings.

According to the release, Seaborn itself has no borrowed money debt and is a healthy business. Through the Seabras bankruptcy process, Seaborn’s management and workforce is expected to remain as it is today.

All trade/vendor claims are expected to be paid in full, and the companies filed customary motions to compensate vendors as usual, maintain their usual programs for customers and partners and otherwise operate their business as usual.

Seabras has $50 million to $100 million in assets and $100 million to $500 million in debt.

The company did not list any unsecured creditors.

The companies are advised in their restructuring by Bracewell LLP and Appleby.

Beverly, Mass.-based Seabras 1 Bermuda and wholly owned subsidiary Seabras 1 USA own a fiber optic cable system between New York and Sao Paulo, Brazil. The Chapter 11 case number is 19-14007.

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