Sheehan Pipe Line Construction plan of liquidation takes effect Jan. 9

By Caroline Salls

Pittsburgh, Jan. 9 – Sheehan Pipe Line Construction Co.’s plan of liquidation took effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the Northern District of Oklahoma.

The plan was confirmed on Dec. 30.

As previously reported, all of the company’s assets, including cash and claims, will be transferred to a liquidating trust.

Sheehan said Joseph Myers of EisnerAmper, LLP will act as liquidating trustee.

A Zurich secured claim will be treated in accordance with a settlement under which Zurich will receive $13 million in cash from sale proceeds, the assignment of bonded projects, contracts and project rights and 60% of Sheehan’s profit sharing from a public auction.

Holders of general unsecured claims, collaterally funded claims and rejection damages claims will receive distributions from the liquidating trust.

The company said existing partnership interests will not be extinguished under the plan, but holders will receive nothing unless all other allowed claims are paid in full.

Sheehan, a Tulsa, Okla.-based pipeline construction company, filed for bankruptcy on April 15, 2016. The Chapter 11 case number is 16-10678.

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