Outer Harbor creditors call for $25 million recovery from insiders

New York, April 27 – Outer Harbor Terminal, LLC’s official committee of unsecured creditors is calling on voters to reject the company’s plan of liquidation until claims that more than $25 million may be recovered from insiders have been investigated.

The committee is asking the company to include a letter alerting those voting on the plan to its claims, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As currently written, the plan releases affiliates, current and former managers, officers and directors from potential claims and causes of action, the committee said in the letter, adding that those releases would be made “improperly.”

The committee said it is currently seeking to investigate claims against insiders – although it noted that the company has refused to cooperate.

In its statement of financial affairs, the committee added, Outer Harbor Terminal disclosed that it transferred more than $25 million to insiders in the year before it filed for bankruptcy.

Some or all of this amount may be subject to recovery, the group said.

In addition, under the California version of the Uniform Fraudulent Transfer Act there is a four-year reach-back period which may open up additional amounts to recovery.

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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