Cal Dive International eyes conversion of bankruptcy case to Chapter 7

By Caroline Salls

Pittsburgh, Feb. 7 – Cal Dive International, Inc. is asking the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 bankruptcy case to Chapter 7, according to a motion filed Monday.

Because of prevailing market conditions, Cal Dive said it determined that a comprehensive plan of reorganization was not feasible.

Instead, in the summer of 2015, the company and its advisers focused their efforts on moving forward with a sale process.

Throughout the summer and fall of 2015, Cal Dive held a series of auctions, which resulted in the sale of substantially all of its assets, including its 15 vessels and the equity interests in some foreign subsidiaries, the motion said.

Since the closing of the asset sales, the company said it has focused on collecting millions of dollars in outstanding receivables, distributing the proceeds of the asset sales in accordance with applicable maritime law and winding down its estates.

“At this time, the debtors have no continuing material business purpose other than the administration of a handful of litigation claims and completing the final stages of the winddown,” Cal Dive said.

“Accordingly, the Chapter 11 cases serve no further purpose and their continuance will only increase administrative costs and reduce the funds available for creditor distributions.”

A hearing is scheduled for Feb. 27.

Cal Dive, a Houston-based marine contractor providing services to the offshore oil and natural gas industry, filed for bankruptcy on March 3, 2015. The Chapter 11 case number is 15-10458.

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