Cal Dive OK to close private $4.5 million sale of inoperative vessel

By Kali Hays

New York, May 27 – Cal Dive International, Inc. obtained permission to complete a private sale of a barge and its related assets owned by subsidiary Cal Dive Offshore Contractors, Inc. to Weeks Marine, Inc. for $4.5 million, according to a May 27 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the barge is used for offshore platform installation but has been docked in Port Arthur, Texas, as it is currently “out of class,” meaning it cannot be operated until it’s been recertified by the United States Coast Guard.

Cal Dive estimates that repairs for recertification will cost between $3.7 million and $4.5 million.

Under the purchase agreement, the sale must close by May 29, as Weeks Marine is looking to employ the barge in an infrastructure project beginning this summer.

Cal Dive said that it had already carried out an “extensive marketing process” prior to filing for bankruptcy and “does not believe that holding a public auction process will result in a higher and otherwise better offer,” the motion says.

However, the company was open to competing bids for the barge submitted by 5 p.m. ET on May 25. If Weeks Marine had not been the ultimate purchaser, it would have received a $90,000 breakup fee.

Cal Dive, a Houston-based marine contractor providing services to the offshore oil and natural gas industry, filed for bankruptcy on March 3. The Chapter 11 case number is 15-10458.

© 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.