The U.S. Bankruptcy Court approved Cal Dive International’ motion to convert its Chapter 11 reorganization proceeding to a liquidation under Chapter 7.
As previously reported, the Company had argued, “As oil prices dropped, so did the appetite for oil and gas companies to drill offshore. This precipitous decline in the industry, in turn, caused the Debtors’ utilization levels to further deteriorate postpetition, and also led to increased delay in the Debtors receiving payment for completed projects from their largest customer, Petróleos Mexicanos (‘Pemex’). Due to these prevailing market conditions, the Debtors determined that a comprehensive plan of reorganization was no longer feasible.”
In addition, “Instead, in the summer of 2015, the Debtors and their advisors focused their efforts on pursuing a robust sale process, which proceeded along two concurrent paths: First, the Debtors conducted an extensive marketing process to sell their core diving and construction businesses as one or more going concerns. Second, the Debtors marketed certain individual vessels and entertained bids for them on a standalone basis. The Court approved procedures for the sale of substantially all of the Debtors’ assets in accordance with this dual-path approach on July 25, 2015.”
Court-filed documents continue, “Since the closing of the asset sales, the Debtors have focused on collecting millions of dollars in outstanding receivables from Pemex, distributing the proceeds of the asset sales in accordance with applicable maritime law, and winding down the Debtors’ estates and certain non-debtor foreign subsidiaries in a value-maximizing manner. 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 wind down.”
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