The U.S. Bankruptcy Court approved Overseas Shipholding Group’s motion for entry of an order authorizing implementation of alternative dispute resolution (ADR) procedures. As previously reported, “The first stage of the ADR Procedures will be the following offer exchange procedures (the ‘Offer Exchange Procedures’)….At any time following the entry of the Order, the Debtors may designate a Designated Claim for resolution through the ADR Procedures by serving upon the alleged holder of the Designated Claim (the ‘Designated Claimant’)….The ADR Notice may also include an offer by the Debtors to settle the Designated Claim (a ‘Settlement Offer’). The ADR Notice also will require the Designated Claimant to sign and return the ADR Notice along with the Designated Claimant’s Permitted Response….Upon the failure to timely return the ADR Notice or to include a Permitted Response, the Debtors will file with the Court a notice of default and proposed order disallowing and expunging the claim….The only permitted responses to an ADR Notice (collectively, the ‘Permitted Responses’) are (i) complete responses to the Information Requests, (ii) acceptance of the Settlement Offer (if any), or (iii) rejection of the Settlement Offer (if any) coupled with a Counteroffer.” The motion continues, “If the ADR Procedures are not approved, the Debtors could incur significant expense, distraction, and drain on the attention of the Debtors’ personnel and suffer significant delays that would slow down the Debtors’ reorganization process. The ADR Procedures provide Designated Claimants with the necessary incentive to come to the bargaining table and offer the Debtors the opportunity to settle claims either through the Offer Exchange Procedures or Mediation with the assistance of a neutral outside party and without time-consuming and costly litigation. The ADR Procedures are also designed to not unduly prejudice the Designated Claimants and protect their rights. Accordingly, the Debtors submit that the ADR Procedures are an efficient and equitable way to resolve the remaining claims and should be approved.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.