Our firm represented two affiliated debtors in the oil industry in Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Following the commencement of the cases, the debtors began and concluded successful negotiations with their plan sponsor, SEACOR LB Holdings LLC, for the formation of a joint venture into which Montco Offshore would contribute substantially all of its assets. Following the proposal of its plan of reorganization, the debtors and their key constituencies agreed to mediation and vigorously negotiated certain modifications to the plan, whereby all allowed claims against each debtor will be paid in full over time.
The plan includes a liquidation for Montco Oilfield Contractors, LLC. The plan further provides for the establishment of a liquidating trust, which will be funded initially with all remaining cash at Montco Offshore, Inc. after payment of certain claims, all remaining cash at Montco Oilfield Contractors, LLC, and additional cash in the amount of $500,000. In addition, until all allowed claims against the debtors have been paid in full, reorganized Montco Offshore, Inc. will pay to the liquidating trust 100 percent of its net earnings from the joint venture.