Sheehan Pipe Line seeks OK to use cash collateral to fund operations

By Caroline Salls

Pittsburgh, May 9 – Sheehan Pipe Line Construction Co. requested court approval to use the cash collateral of its pre-bankruptcy secured creditors to fund its operations while in bankruptcy, according to a motion filed Friday with the U.S. Bankruptcy Court for the Northern District of Oklahoma.

The company said Caterpillar Financial Services Corp. and Zurich American Insurance Co. have alleged interests in the cash collateral.

According to the motion, the proposed cash collateral use would terminate on the earliest of July 19, dismissal or conversion of Sheehan’s Chapter 11 case, the appointment or election of a trustee, examiner or any other representative with expanded powers, the effective date of a plan of reorganization, failure to adhere to a related budget or to comply with the terms of the interim cash collateral order and entry of a court order staying, vacating or modifying the terms of the interim order.

The company requested a May 12 hearing.

Sheehan, a Tulsa, Okla.-based pipeline construction company, filed bankruptcy on April 15. The Chapter 11 case number is 16-10678.

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