Tidewater filed with the U.S. Bankruptcy Court an objection to (a) the official equity committee’s (OEC) emergency motion for a further adjournment of the Disclosure Statement and Plan Confirmation hearing and (b) the official equity committee’s motion for expedited consideration of same.
The objection asserts “First, the OEC’s request is a transparent action to exert settlement leverage. The OEC requested the first adjournment in order to have time to exercise its fiduciary duties, determine whether it will be contesting the Plan, and prepare for a contested confirmation hearing, if necessary….Second, for the reasons discussed in the Debtors’ objection to the First Motion to Adjourn and below, the potential risk of harm to the Debtors’ business and estates far outweighs any rationale offered by the OEC to extend the date for the Combined Hearing for a second time. As the Court is aware, the Debtors conduct significant (almost 90% of their) operations in foreign countries. As a result, many of the Debtors’ creditors and contract counterparties do not transact business on a regular basis with companies that have filed for chapter 11 protection and may not understand the reach of the automatic stay. Moreover, many of the Debtors’ contracts are short term contracts.”
In addition, “Changing course yet again at this late stage in the Debtors’ chapter 11 cases, and after the only impaired class has voted overwhelmingly to accept the Plan, may have serious unintended consequences to the Debtors, their estates, their operations, and these cases. The Debtors should not have to take on such a risk at the whim of the OEC.”
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