Outer Harbor Terminal gets plan extension to address committee issues

By Caroline Salls

Pittsburgh, Aug. 3 – Outer Harbor Terminal, LLC obtained an extension of the exclusive periods during which only the company can file and solicit votes on a Chapter 11 plan, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

Outer Harbor’s exclusive filing period was extended by 36 days through Aug. 1 and the solicitation period through Oct. 2.

Because its wind down is substantially complete, the company said it was primarily focused on prosecuting its previously proposed plan to confirmation.

“However, due to certain issues raised by the recently appointed official committee of unsecured creditors, the debtors have put the plan process on hold,” the motion said.

In the meantime, Outer Harbor said it has been working with the committee, the company’s debtor-in-possession lenders and related parties to address the committee’s issues as promptly and efficiently as possible.

As a result, the company said it was seeking the extension to allow it to resolve the issues raised by the committee “without having to defend against a competing plan or, in the alternative, to propose an alternative to the plan in the event that the negotiations and/or litigation with the committee require the debtor to do so.”

As previously reported, the committee objected to the 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.”

The extension order eliminated a proposed provision that would have given the company the right to seek further extensions in the future.

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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