Expedited Motion for Order Appointing OEC (2/16/11)
The Debtors appear to have filed for Chapter 11 in part to fast-track a proposed sale transaction (the “Proposed Sale”) with Hercules Offshore Inc. (“Hercules”). As set forth in the Debtors’ emergency motion for order scheduling expedited hearing to approve sale (Doc. No. 19) (the “Sale Motion”), the Proposed Sale would result in the Debtors receiving $25 million in cash and 22.3 million shares of Hercules common stock in exchange for the sale of substantially all of its assets. As the Debtors have stated, the Proposed Sale is likely to result in payment of secured and unsecured claims in full, and will provide a recovery for equity holders. The equity markets have recognized this fact, and at the close of the market on February 16, 2011 (four business days after the Petition Date), the common stock of Seahawk Drilling, Inc. was trading at $4.22 per share. Thus, Hercules, in its capacity as acquirer, the Debtors’ management, and the capital markets have determined that the Debtors are clearly solvent.
Source: PACER [Docket 58]
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