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Cal Dive bid protections for $16 million in stalking horse bids OK’d
By Kali Hays
New York, July 7 – Cal Dive International, Inc. received approval of bid protections for two stalking horse bidders with offers totaling $16.1 million related to the company’s ongoing sale of substantially all remaining assets, according to a Tuesday order from the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, 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 approved 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.
Bid procedures for the asset sales were approved by the court on June 25, and Cal Dive will consider stand-alone bids for its vessels and only going-concern considerations for its operational businesses.
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.
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