Cal Dive International filed with the U.S. Bankruptcy Court a motion for an order authorizing the Debtors to distribute lien reserves related to the vessels Texas and Cal Diver I.
The motion explains, “Here, the Court should authorize the Debtors to distribute the Lien Reserves for the Texas and Cal Diver I to the Maritime Lienholders, the DIP Agent, and Jefferson County, as applicable, under sections 363(b)(1) and 105(a) of the Bankruptcy Code because these parties hold the most senior liens with respect to these Lien Reserves. Maritime lien priority is a function of both federal statutory and common law. General maritime law governs the priority of liens on vessels.”
The motion continues, “The Debtors believe that, following satisfaction of the Maritime Lienholders’ claims, there will be remaining funds in the Texas Lien Reserves. Accordingly, the Debtors seek authority to distribute such remaining Lien Reserves to the DIP Agent on account of the liens arising from the DIP Agent’s preferred ship mortgage against the Texas…. The Vessel Texas has $2,408,635 in asserted and postpetition liens; $3,350,000 in sale proceeds; $75,000 in amount of lien reserves distributed with $3,275,000 in remaining lien reserves. The Vessel Cal Diver I has $15,017,469 in asserted and postpetition liens; $237,500 in sale proceeds; $220,030.67 in amount of lien reserves distributed with $17,469.33 in remaining lien reserves.”
The Court scheduled an April 22, 2016 hearing, with objections due by April 15, 2016. Read more Cal Dive bankruptcy news.
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