The EMAS Chiyoda debtors have filed a joint chapter 11 plan of reorganization and a disclosure statement, which puts forward a complex preliminary proposal for the establishment of a newly formed entity, to be owned by a member of the Subsea 7 Group and designated by Subsea 7 to acquire the equity of the emerging debtors and assume certain liabilities.
The new entity would provide for the restructuring of a series of EMAS backed ventures, such as EMAS-AMC, EMAS Saudi Arabia, EMAS Chiyoda Subsea Services, EMAS Chiyoda Subsea Inc, and EMAS-AMC (Thailand).
The purchase price paid by the new entity will be used to fund the plan, including the payment of administrative, priority, and unsecured claims — however a disclosure statement approval motion has not been filed and most of the economics appear yet to be finalized.
No financial specifics were provided in the documents.
Other parts of the group, such as Lewek Constellation, EMAS Chiyoda Subsea Marine Base and Lewek Falcon Shipping would be liquidated if the plan were to be approved.
As the debtor-in-possession lenders, Chiyoda Corporation and Subsea 7 Finance are sponsors of the plan, but still retain the flexibility to consider alternative investors to assist in recovering the mounting claims and interests against the group.
Some of the claims are not expected to be paid in full.
“The debtors believe that the plan is in the best interests of creditors when compared to all reasonable alternatives,” stated the filing to the Southern District of Texas division of the U.S. bankruptcy court.
