Seaboard Realty eyes exclusivity extension, holds settlement talks

By Caroline Salls

Pittsburgh, Dec. 5 – Seaboard Realty, LLC requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Seaboard is asking the court to extend the exclusive filing period to Feb. 6 from Dec. 7 and the solicitation period to April 7 from Feb. 6.

In light of an investigation into improper pre-bankruptcy cash management practices that “has yielded some useful preliminary information,” the company said it seems clear that, absent a global resolution of its cases, cash proceeds from its asset sale “will be dissipated by further rancorous litigation.”

As a result, Seaboard said it conducted a settlement conference with representatives of various remaining mezzanine creditors and investors to sketch out a path forward, prepared a draft plan term sheet for parties to review and scheduled another settlement conference to potentially refine and finalize a term sheet.

“In order to determine whether a consensual plan is possible and to potentially effectuate this settlement process, the court should extend the debtors’ exclusive periods,” the motion said.

A hearing is scheduled for Jan. 10.

Seaboard Hotel is a subsidiary of Seaboard Realty, which owns office, hotel and residential properties throughout Stamford, Conn. The company filed for bankruptcy Dec. 14, 2015 under Chapter 11 case number 15-12507.

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