OFS International unsecured creditors object to disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 22 – OFS International, LLC’s official committee of unsecured creditors objected Thursday to the company’s disclosure statement, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee said it supports the debtors’ efforts to reorganize and does not oppose legitimate and reasonable efforts by Konstantin Semerikov to retain ownership of the reorganized OFSI Holding, LLC, as well as its debtor subsidiaries, through a new value contribution.

The proposed new value contribution is $350,000 to retain the equity of a group of debtors that its financial advisers project will be a $7 million EBITDA per year enterprise.

The committee said given that under the proposed plan the committee’s constituency, which is senior to Semerikov, will receive between a 48% to 55% distribution on their claims.

“The proposed disclosure statement provides no information regarding whether or how Mr. Semerikov’s new value contribution has been ‘market tested,’” the committee said.

“Absent information on this key component of the proposed plan, the proposed disclosure statement does not contain information adequate for creditors to determine whether to vote on acceptance or rejection of the proposed plan.”

The committee said the absence of that information renders the proposed plan unconfirmable over the objection of general unsecured creditors.

The Houston-based company provides oil company tubular goods and services. The company filed bankruptcy on May 31 under Chapter 11 case number 21-31784.

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