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Cal Dive International Enforcement Approved

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The U.S. Bankruptcy Court issued an order approving Cal Dive International’s motion to authorize and enforce the Court’s July 24, 2015 sale order and the terms of the related acquisition agreement by and among Cal Dive International PTE and Cal Dive Offshore Contractors, on the one hand, and purchaser Shelf Subsea Services PTE, on the other hand.

As previously reported, “Shelf Subsea breached the terms of the Sale Order and Acquisition Agreement by failing to remit to the Debtors the required percentage of a fund retention (the ‘Chevron Retention’) that was received by Shelf Subsea from Chevron Australia (‘Chevron Australia’). Accordingly, the Debtors respectfully move the Court for an order (i) enforcing the Sale Order and (ii) requiring immediate payment of 75% of the Chevron Retention received by the Purchaser to the Debtors in accordance with the terms of the Acquisition Agreement.”

Court-filed documents continue, “The Debtors understand that, to date, Shelf Subsea has received payment of A$893,195.65 from Chevron Australia relating to the Chevron Retention. Pursuant to the terms of the Acquisition Agreement, Shelf Subsea is obligated to turn over seventy-five percent of that amount to the Debtors, A$669,896.74. Despite the Debtors’ repeated requests, Shelf Subsea has failed to do so and thus is in breach of the Acquisition Agreement and the Sale Order….Despite repeated requests for payment of the amount owed under the Acquisition Agreement, however, Shelf Subsea has not remitted the required funds to the Debtors.”

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