Outer Harbor Terminal committee asks court to terminate exclusivity

By Caroline Salls

Pittsburgh, July 11 – Outer Harbor Terminal, LLC’s official committee of unsecured creditors objected to the company’s request for an exclusivity extension, arguing that Outer Harbor’s proposed Chapter 11 plan “is dead in the water because it will never have the committee’s support,” according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said the company’s proposed plan seeks to protect and insulate its insiders from all possible liability by granting releases to the insiders that have not been bargained for with the creditor group.

“The only plans that could possibly work in this case are either a plan that is fully consensual between the debtor, its insiders and the committee or a plan proposed by the committee that will appoint a liquidating trustee to pursue avoidance actions against insiders and distribute the debtor’s cash on hand,” the objection said.

“The debtor should be prevented from going forward with its plan under any circumstances as it is simply a waste of time and estate resources.”

As a result, the committee said exclusivity should be terminated so that it will have options, if mediation fails, to take action against the insiders through either supporting a conversion of the case or proposing its own plan that will appoint a liquidating trustee.

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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