Tidewater’s official committee of equity security holders filed with the U.S. Bankruptcy Court an objection to the Company’s Prepackaged Chapter 11 Plan of Reorganization.
The committee asserts, “First, the Plan fails under Bankruptcy Code Sections 1129(a)(3) and 502(b) because it provides undue value to Noteholders on account of an undisclosed creditor arrangement providing value under the Plan for a Make-Whole Claim that should rightfully be disallowed. Disallowing the Make-Whole Claim adds an additional approximately $91 million of value available to equity. Second, the Equity Warrants impermissibly discriminate against non-US holders. To ensure the Debtors remain in compliance with the Jones Act, the Debtors may deny non-US Citizens the right to exercise the Warrants.”
In addition, “However, the Debtors have failed to provide standard alternatives that would allow non-US Citizens to receive the economic benefit of exercising the Warrants while keeping the Debtors in compliance with the Jones Act….The Plan fails to treat the Equity Committee and its professionals fairly. The Equity Committee and its professionals are excluded from the releases, exculpations, and fee procedures under the Plan. The Plan must be modified to treat the Equity Committee and its professionals in the same manner as other case fiduciaries.”
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