Toisa unsecured creditors request official committee representation

By Caroline Salls

Pittsburgh, May 12 – An official committee of Toisa Ltd.’s unsecured creditors asked the U.S. Bankruptcy Court for the Southern District of New York to order appointment of an official committee and extend that committee’s deadlines for challenging cash collateral orders, according to a motion filed Friday.

“These mega cases have been pending for more than three months and the Office of the United States Trustee has yet to appoint an official committee of unsecured creditors,” the unofficial creditor group said.

According to the motion, there are three creditors seeking membership to an official committee who hold a total of $116 million in claims against three individual debtors, and a fourth general unsecured creditor holding a multimillion dollar claim will be submitting a questionnaire to the U.S. Trustee early next week and will serve on the unofficial committee in connection with the appointment motion.

The creditors said an official committee will be a constructive party in the ongoing negotiations with the secured lenders, “give meaning to the otherwise pointless lien challenge periods contained in this court’s multiple cash collateral orders” and allow the court to enter findings of fact and a plan confirmation order when that time comes knowing that the interests of unsecured creditors were represented.

Toisa is a Hamilton, Bermuda-based shipping business. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 17-10184.

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