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Bankruptcy judge approves Bouchard Transportation vessel sales

Petroleum barge operator Bouchard Transportation, which filed for bankruptcy in  September 2020, was approved last week by US bankruptcy judge David Jones in Laredo, Texas, to sell its two primary groups of assets for $245m. JMB Capital Partners LLC will pay $115.3m for one group of vessels, and Rose Cay GP LLC $130m for a second group.

Bouchard’s lawyers and its unsecured creditors’ committee are, however, continuing conversations with investment firm 507 Capital on an alternative restructuring proposal, which they hope will bring in more money to cover the losses of unsecured creditors.

The committee objects to fees that Bouchard agreed to pay its lead bidder, Hartree Partners, if that company didn’t win at an auction for the assets. Hartree says it is entitled to the fees. The judge will hear that dispute in the future.

barge explosion and fire in October 2017 near the Port of Corpus Christi in the Gulf of Mexico marked the start of Bouchard’s financial crisis, exacerbated by the impacts of Covid-19. It filed for bankruptcy to block foreclosure sales of its vessels in Louisiana, Florida, Texas and New York.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.
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