Montco Offshore files Chapter 11 plan based on Seacor sponsorship deal

By Caroline Salls

Pittsburgh, Sept. 27 – Montco Offshore, Inc. and its Montco Oilfield Contractors, LLC debtor filed a Chapter 11 plan and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Montco announced last month that Seacor Liftboat Holdings, LLC submitted the only qualified bid to sponsor its Chapter 11 plan.

As previously reported, Seacor and Montco will jointly form and capitalize a new joint venture company by contributing liftboat vessels and other related assets to the joint venture, as well as requiring the joint venture to assume operating liabilities and debt associated with the liftboat vessels and related assets.

The joint venture will consolidate 13 liftboat vessels currently operated by a subsidiary of Seacor Marine, six liftboat vessels currently operated by Montco and two liftboat vessels currently operated by an existing joint venture between affiliates of each of the companies.

The Seacor/Montco joint venture will assume roughly $130 million of debt from Montco’s credit facilities, which, apart from a guarantee of interest payments for two years after the closing of the transactions, will be non-recourse to Seacor Marine.

In addition, the joint venture will assume about $76 million of debt currently reflected on Seacor Marine Holdings Inc.’s financial statements. Seacor Marine is expected to be the majority owner of the equity interests in the joint venture.

Under the plan, holders of debtor-in-possession claims will be paid in full in cash.

Holders of first-lien secured claims will receive a share of the company’s exit facility.

Holders of other secured claims will receive cash and a payment-in-kind note for the balance of the claim amount.

Holders of sole liability general unsecured claims will receive a cash distribution of up to 100% of the allowed amount of the claim, to the extent cash is available after payment in full of other secured claims and after funding any necessary reserves related to disputed claims and/or costs of administering the plan, as well as a share of the PIK note on account of any balance.

Holders of other general unsecured claims will receive a share of liquidating trust interests.

Equity interests in Montco Offshore will remain outstanding, and equity interests in Montco Oilfield will be canceled.

A hearing on conditional approval of the disclosure statement is scheduled for Oct. 3.

Houston-based Montco operates lift boats for the offshore energy industry. The company filed bankruptcy on March 17, 2017 under Chapter 11 case number 17-31646.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.