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Cal Dive International Distribution Sought

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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 Uncle John (a foreign flagged vessel).

The motion explains, “Because the Maritime Liens asserted against the Uncle John in Proofs of Claims (totaling $7,528,218), plus those Maritime Liens that accrued postpetition and remained outstanding (totaling at the time, approximately $1,052,995), exceeded the sale proceeds, the Debtors distributed the full amount of the sale proceeds (i.e. $1,296,750) to the Lien Reserves….The Debtors seek to distribute the remaining Lien Reserves to those Maritime Lienholders with the senior most claims against such Lien Reserves. Under applicable maritime law, maritime liens of the same class are entitled to priority of payment in inverse order of time of accrual, hence liens arising in connection with last voyage of a vessel have priority of payment over liens accruing on a prior voyage.”

The motion continues, “As a consequence, the last maritime lienholders to provide ‘necessaries’ to the Uncle John have the most senior claim against the Lien Reserves. In this case, Maritime Liens totaling $772,600.78 have accrued postpetition against the Uncle John and remain outstanding….By this Motion, the Debtors propose to satisfy the Maritime Liens set forth on Schedule 1 to the Proposed Order in full by distributing the $396,750 from the Lien Reserves, and satisfying the deficiency from the Debtors’ operating account.”

The Court scheduled a November 16, 2016 hearing to consider the motion, with objections due by November 9, 2016. Read more bankruptcy news.

The post Cal Dive International Distribution Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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