Liberty Global Logistics filed with the U.S. Bankruptcy Court an objection to International Shipholding’s restructuring support agreement with SEACOR Capital.
The objection asserts, “The RSA Motion seeks the Court’s blessing of an insider transaction in favor of Erik L. Johnsen, President and CEO of the Debtors and the Debtors’ DIP Lender, SEACOR Capital Corp. (‘SEACOR’ or the ‘DIP Lender’), that removes the core of the Debtors’ businesses from competitive bidding, to the detriment of the Debtors’ estates and their creditors. Accordingly, the RSA Motion should be denied. Given the attempt by the CEO and DIP Lender to eliminate competitive bidding for the Debtors’ core assets, the Court should ensure that any plan proposed by the Debtors provides for a competitive process for plan sponsorship so as to ensure that the value of the Debtors’ estates is maximized for the benefit of the Debtors’ creditor.”
The objection continues, “Even apart from the benefits being provided to an insider in the transactions proposed in the RSA Motion and Sale Motion, the Court should not countenance a DIP Lender sponsoring a plan that does not provide for competitive bidding. That is particularly true here, where the DIP Lender is proposing to pay only $28 million ($10 million in cash and $18 million to pay off the DIP Loan) in exchange for 100% of the reorganized equity in the Debtors’ three core business segments, the Jones Act, PCTC, and Rail-Ferry businesses. However, Liberty has already indicated to the Debtors that it will pay $55 million in cash for just one of the Debtors’ business segments, the PCTC business, and will pay additional amounts for the two other core business segments, the Jones Act and Rail-Ferry businesses.”
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