International Shipholding filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the Debtors’ entry into a restructuring support agreement (RSA) with Seacor Capital.
The motion explains, “In the three months since the Petition Date, the Debtors have worked diligently with their key constituencies toward a goal of maximizing the value of the Debtors’ estates. After concluding a comprehensive analysis of the alternatives available to the estates, the Debtors have determined that the way to best reach this goal is a two-pronged approach: the Debtors will (1) execute a sale process for one of their four business segments, the Specialty Business Segment, and (2) propose a plan of reorganization (the ‘Plan’), with SEACOR as plan sponsor, to reorganize the remaining business segments.”
The motion continues, “As a first step in this process, the Debtors are seeking authority to enter into the RSA, which serves as a blueprint for a Plan and contemporaneously herewith have filed a motion to establish procedures to sell the Specialty Business Segment. The RSA and its associated Term Sheet…both of which were heavily negotiated by the Debtors and their advisors contemplate that pursuant to the Plan and the transactions contemplated thereby, SEACOR will: contribute $10 million in cash to the reorganization process and contribute the DIP Claim (including that portion owned by DVB Bank SE (‘DVB’), which shall be purchased by SEACOR or repaid by SEACOR) in exchange for 100% of the equity in the reorganized Debtors offer employment opportunities to the Debtors’ union members on terms contained in CBAs modified to contain terms not less favorable than the terms proposed by the unions currently utilized by SEACOR for substantially similar jobs (with such terms not including any obligation to contribute to any defined benefit pension plans that would be new to SEACOR) arrange for a $25 million exit facility assume certain of the Debtors’ pre-petition contracts.”
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