March 14 2002
FGH to reorganize offshore and Halter components
Friede Goldman Halter, Inc. yesterday announced its decision to file a joint plan to reorganize Friede Goldman Offshore (FGO) and Halter Marine, Inc. (HMI) under Chapter 11 of the Bankruptcy code. The Debtors and the Official Unsecured Creditors Committee are supporting this reorganization. Noticeably absent from FGH's statement is any reference to the secured creditors' reaction to the proposal.
"The restructuring Committee of the Board of Directors, after extensive review of options, will pursue the internal reorganization of the Offshore and Marine segments which is believed to be in the best interests of all parties," says the statement. "Details of the reorganization plan are being finalized and the reorganization plan will be filed with the United States Bankruptcy Court in the near future."
Jack Stone, principal, Glass & Associates, Inc. and chief restructuring advisor to FGH, commented, "This stand alone reorganization effort will result in the emergence of Friede Goldman's Offshore and Marine business units from Chapter 11 and allow the internal rehabilitation of the two companies to pursue ongoing business interests unimpaired by the bankruptcy processes as separate and distinct entities.''
What all this appears to mean is that the offers that would-be buyers have made for the various parts of FGH haven't reached the hoped for levels. What yesterday's statement appears to indicate is that Friede Goldman Offshore and Halter Marine will now be spun off from FGH. It will be interesting to see who will wind up owning their shares. This, of course, is all subject to the approval of the court.