Toisa eyes extension of exclusive solicitation period, cites mediation

By Caroline Salls

Pittsburgh, Oct. 20 – Toisa Ltd. asked the U.S. Bankruptcy Court for the Southern District of New York to extend its exclusive period for soliciting votes on a Chapter 11 plan until 30 days after a final mediation report is filed, according to a motion filed Friday.

The company’s exclusive solicitation period is scheduled to expire on Oct. 26.

As previously reported, Toisa filed its joint plan of reorganization and related disclosure statement on Aug. 15. The company said the plan was filed then “to provide a path forward” and comply with a milestone set in its final cash collateral order.

On Sept. 19, an informal secured lenders committee provided the company with a formal response to the plan in the form of a term sheet that called for the right of each secured vessel lender to credit bid for the vessel that secures that lender’s vessel facility.

Toisa said it subsequently agreed with the informal committee, as well as the official committee of unsecured creditors appointed for the bankruptcy case, to seek mediation in an effort to work toward a consensual plan.

According to Friday’s motion, the mediation is scheduled to take place on Nov. 2 and Nov. 3.

“The debtors will not be in a position to begin solicitation until the proposed disclosure statement is approved, which will not be until after the mediation and the current exclusive solicitation period expires,” the motion said.

“The additional time provided by the extension...will allow all parties in interest to negotiate toward a consensual resolution though the mediation process without the unnecessary and value destructive distraction of competing plan proposals.”

A hearing is scheduled for Nov. 8.

Toisa is a Hamilton, Bermuda-based shipping business. The company filed bankruptcy on Jan. 29, 2017 under Chapter 11 case number 17-10184.

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