Outer Harbor committee asks court to deny conditional plan approval

By Caroline Salls

Pittsburgh, March 1 – Outer Harbor Terminal, LLC’s official committee of unsecured creditors objected to proposed conditional approval of the company’s plan of liquidation and related disclosure statement for vote solicitation purposes, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

“The committee strongly opposes the motion and approval on any level of the combined plan and DS as they are currently drafted,” the objection said.

Specifically, the committee said the motion should be denied because it is an attempt to rush confirmation without allowing the input of the creditor group and because the documents deprive the committee of its right to investigate the company’s assets.

The committee said the plan and disclosure statement also “unjustly coerce creditors to provide releases to debtor and debtor’s insiders without any real justification.”

In addition, the committee said Outer Harbor “has gerrymandered the classification of claims to cram down interests of general unsecured creditors without their consent.”

Based in Oakland, Calif., Outer Harbor is a provider of container terminal operation and stevedore services at the Port of Oakland. The company filed for bankruptcy on Feb. 1, 2016 under Chapter 11 case number 16-10283.

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