Petroleum barge operator Bouchard Transportation has secured court approval to sell its two main groups of assets for a combined $245 million, Reuters reported. During a virtual hearing on Thursday, U.S. Bankruptcy Judge <b>David Jones</b> in Laredo, Texas, signed off on the two sales to Rose Cay GP LLC and JMB Capital Partners LLC. However, lawyers for Bouchard at Kirkland & Ellis, as well as its unsecured creditors’ committee, said at the hearing that they are continuing conversations with investment firm 507 Capital on an alternative restructuring proposal. Bouchard filed for bankruptcy in September 2020 with $230 million in debt as the COVID-19 pandemic worsened existing financial problems at the company that stemmed from a barge explosion in 2017. JMB is acquiring a group of vessels for $115.3 million, which consists of a combination of cash and a credit bid of its existing loan made to Bouchard earlier in the bankruptcy. Rose Cay is paying $130 million for another group of vessels. Though the Judge Jones had praise for the sale process, the bidding process prompted questions from certain creditors as well as the company’s owner, Morton Bouchard III. Morton Bouchard and his family said in court papers recently that they are concerned the sales will not bring in proceeds sufficient to provide unsecured creditors meaningful recoveries. The Bouchard family said it had spoken to 507 Capital about an alternative strategy that would set aside specifics funds for unsecured creditors but had been “rebuffed.”
