Seabras 1 USA looks to use pre-bankruptcy lenders’ cash collateral

By Caroline Salls

Pittsburgh, Jan. 8 – Seabras 1 USA, LLC requested court approval to use the cash collateral of its pre-bankruptcy secured parties, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Seabras said the cash collateral will be used for working capital and general corporate purposes.

According to the motion, the company’s interim access to cash collateral would expire on the earliest of 5 p.m. ET on Feb. 4, the effective date of a plan of reorganization, the amendment, assumption or rejection of any project document without the written consent of the pre-bankruptcy lender agent, entry of a court order approving debtor-in-possession financing and a breach of the interim order, including failure to comply with an approved budget.

The company requested a Jan. 9 interim hearing and a Feb. 4 final hearing.

Beverly, Mass.-based Seabras 1 Bermuda Ltd. and wholly owned subsidiary Seabras 1 USA own a fiber optic cable system between New York and Sao Paulo. They filed bankruptcy on Dec. 22 under Chapter 11 case number 19-14007.

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