According to the U.S. Bankruptcy Court docket, Cal Dive International filed a motion to authorize the Debtors to distribute lien reserves related to the Kestrel, Midnight Star and Sea Horizon.
The motion explains, “For foreign flagged vessels, such as the Kestrel, Midnight Star, and Sea Horizon, the Maritime Lienholders have the senior most claim against the Lien Reserves and thus the Debtors believe that the requested distributions will not prejudice any less-senior creditors. Indeed, the Debtors have resolved and satisfied all known personal injury claims against the Kestrel, Midnight Star, and Sea Horizon and the DIP Lenders’ preferred ship mortgages are junior to the Maritime Lienholders.”
Court-filed documents continue, “The Maritime Liens asserted against the Kestrel, Midnight Star, and Sea Horizon are largely consistent with the Debtors’ books and record and any balance from the reconciliation process would be de minimis, particularly in light of the costs to be incurred in reconciling such amounts.”
The Debtors subsequently filed with the Court a motion for mediation (i) directing parties to mediation to determine the distribution of lien reserves related to the American Constitution, Cal Diver I, Lone Star, and Uncle John and (ii) authorizing the Debtors to file an inter-pleader action with respect to such lien reserves if mediation fails to result in a settlement. The mediation motion explains, “Specifically, the American Constitution, Cal Diver I, Lone Star, and Uncle John all sold for amounts that fell short of satisfying the Maritime Liens. In an effort to quickly and efficiently determine the distribution of the Lien Reserves for these vessels, the Debtors request that the Court enter an order directing the Maritime Lienholders for these vessels to mediation (the ‘Mediation’) and establishing procedures for conducting the Mediation….If any Mediation does not result in a settlement regarding the distribution of the Lien Reserves, the Debtors request that the Court authorize the Debtors to commence an interpleader action in federal Court in Louisiana and inter-plead the Lien Reserves with respect to that vessel.”
The Court scheduled a December 15, 2015 hearing on both motions, with objections due by December 8, 2015. Read more bankrupt company news.