Cal Dive gains $16.1 million in stalking horse bids for vessel sales

By Kali Hays

New York, July 1 – Cal Dive International, Inc. has selected two stalking horse bidders with offers totaling $16.1 million for the purchase of seven vessels related to the company’s ongoing sale of substantially all remaining assets, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Holmen International Ltd. is the stalking horse bidder for the company’s Sea Horizon vessel with an offer of $12 million, and Modern American Recycling Services, Inc. is the stalking horse bidder for the company’s Brave, Pecos, Pacific, Kestrel, Cal Dive I and Cal Dive II vessels with an offer of $4.1 million.

Under the proposed stalking horse agreements, Holmen will be entitled to expense reimbursement up to $100,000 if it is not the ultimate purchaser, and Modern American will be entitled to reimbursement of up to $82,000.

A hearing to approve the stalking horse agreements is set for July 7.

As previously reported, Cal Dive received approval of the bid and auction procedures for the asset sale on June 25.

Assets for sale consist mainly of marine vessels and “going-concern international and domestic business platforms,” including the company’s core diving and construction businesses.

Under the bid procedures, the company will consider stand-alone bids for the vessels but only going-concern considerations for its operational businesses “ensuring that contract counterparties receive appropriate cure.”

Bids for vessels or going-concern bids are due no later than 5 p.m. ET on July 17, and an auction is scheduled for July 22. A sale approval hearing will follow on July 24.

There is no baseline bid for the assets as the company and its lenders will evaluate the merits of bids on an individual basis, but any qualified bidder must submit a cash deposit equal to 10% of the purchase price.

Bids at auction are required in increments of $50,000 for vessel assets and $500,000 for going-concern business assets.

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.