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February 29, 2008 |
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SEA CONTAINERS: Court Stretches Plan-Filing Period to April 15 The U.S. Bankruptcy Court for the District of Delaware further extended, until April 15, 2008, Sea Containers Ltd. and its debtor-affiliates' exclusive period to file a plan of reorganization. The Court also fixed June 16, 2008, as the deadline for the Debtors to solicit acceptances of that plan. As reported in the Troubled Company Reporter-Europe on Feb. 19, 2008, the Debtors told the Court that this will be their last request for an extension of the Exclusive Periods, in accordance with Section 1121(d)(2) of the U.S. Bankruptcy Code. The Debtors related that since filing their last exclusivity request, they have made substantial progress on the (i) change of control arbitration, and (ii) treatment of claims arising on account of the Debtors' pension scheme liabilities. The Debtors also hope to engage in discussions with GE to resolve open disputed issues between them with respect to GE SeaCo. The Debtors related that they obtained a favorable result in the change of control arbitration. The arbitrator ruled in favor of Sea Containers Ltd. by finding that a change of control did not occur as a result of the resignation of Jim Sherwood, its president, chief executive officer, and chairman of the board. The Debtors also related that they have reached agreement on the terms of a settlement with the Official Committee of Unsecured Creditors for Sea Containers Services Ltd. and the Pension Trustees with respect to the Debtors' pension scheme liabilities. The Debtors expect to file a request to approve the settlement in the near term. Maintaining exclusivity will allow the Debtors to focus on obtaining approval of the Pension Settlement, which the Debtors' view as a prerequisite to filing a Chapter 11 plan. Failure to obtain the extension can lead only to unnecessary distraction and delay in resolving the Debtors' pension scheme liabilities, a task that must be completed before a viable Plan can be presented to the Court, the Debtors said. The Debtors believe that the requested extension will also facilitate the arrangement of exit financing. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/ -- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court previously gave the Debtors until Feb. 20, 2008 to file a plan of reorganization. |
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