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GulfMark Offshore Bankruptcy Plan Implementation Denied

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The U.S. Bankruptcy Court denied GulfMark Offshore’s ad hoc committee’s motion for entry of an order in aid of implementation of the confirmed Chapter 11 Plan and directing, inter alia, that the Plan be consummated without immediate payment of certain benefits to board members.

The order states, “The Ad Hoc Committee of Unsecured Senior Notes (the ‘Senior Notes’) has filed an emergency motion1 in aid of implementation of the confirmed Chapter 11 Plan for an Order directing the Plan to be implemented – go effective – without immediate payment of certain benefits to present Board Members (the ‘Motion’). Specifically, the Senior Notes argue that Board Members should not be permitted to authorize the payment on the Plan’s effective date of funds which may be due them from the Debtor’s Deferred Compensation Plan (the ‘DCP’). The Senior Notes argue that the DCP was never intended to be a ‘payment in full in cash on the Effective Date.’…The payments under the DCP were fully disclosed in Debtor’s Schedules of Assets and Liabilities (Schedule E/F) (D.I. 145) and in the Disclosure Statement (D.I. 173), and were discussed by Debtor and the Senior Notes as early as April 2017, before the Senior Notes entered into the Restructuring Support Agreement.”

In additition, “The Senior Notes did not object to the Disclosure Statement, the Plan or raise issues about the DCP. The Court confirmed the Plan with the Senior Notes’ full knowledge and support. A change in control will occur on the effective date because the new Board of Directors will replace Debtor’s previous Board of Directors. The change in control allows implementation of the DCP on the effective date. For the foregoing reasons, the Court denies the Motion. The current Board of Directors will receive their DCP payments upon the change of control at the effective date.”

Read more GulfMark Offshore bankruptcy news.

The post GulfMark Offshore Bankruptcy Plan Implementation Denied appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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