Paragon Offshore’s unofficial equity committee of the shareholders filed with the U.S. Bankruptcy Court an objection to the Debtors’ fifth motion for entry of an order extending the exclusive periods.
The objection asserts, “There is nothing expeditious about the Third Joint Chapter 11 Plan of Paragon Offshore. In fact, even if Third Plan were to be confirmed in these Chapter 11 proceedings, at the contemplated deadline in June, that confirmation would merely serve as a halfway marker before the stakeholders continue to another contested proceeding in the United Kingdom. Competing plans should be allowed to be considered, in order to maximize value for the estate, as the Debtors’ Third Plan, clearly does not. For the sake of efficiency, competing plans should be allowed to be solicited so that alternative prospects can be evaluated by all stakeholders….The Debtors’ have been asking for ‘short extensions’ for months and have still failed to make any progress toward getting their plan ready for confirmation. In addition, there is no reason to believe that the current Board of Directors (‘Board’) will be re-elected at the statutory mandated Annual General Meeting, at which point in time, the Debtors’ will be unable to complete part two of their contemplated restructuring in the United Kingdom…The Unofficial Committee agrees that a global resolution needs to be reached, but the Debtors’ Third Plan does not come close to a realistic plan and requires numerous revisions. Simply put, the Debtors’ have enjoyed close to 15 months of exclusivity and have failed to create a confirmable plan. The Debtors have failed to meet the standard of making good faith progress toward reorganization. The Debtors’ Fifth Exclusivity Motion does not have a proper purpose as it is yet another attempt to block the shareholders out from having a voice in these proceedings and deny the shareholders their statutory rights.”
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