Superior Offshore granted court approval for plan of liquidation

By Jennifer Lanning Drey

Portland, Ore., Jan. 28 - Superior Offshore International, Inc. obtained court approval for its plan of liquidation Wednesday from the U.S. Bankruptcy Court for the Southern District of Texas, according to sources familiar with the case.

As previously reported, the plan agent will be the sole officer, director and shareholder of the company as of the plan effective date.

Superior Offshore will be dissolved after plan distributions have been made.

Creditor treatment

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of secured claims will receive either the proceeds from the sale of the collateral securing the claim or the return of the collateral;

• Holders of general unsecured claims and subordinated claims will receive a share of distributions from available cash and a plan agent recovery;

• Holders of subordinated securities claims will first see recovery from the proceeds of the company's available insurance policies to the extent the claims are covered by the insurance. After that these creditors will receive a share, along with interest holders, of any remaining available cash and plan agent recovery; and

• Interest holders will receive a share of any remaining available cash and plan agent recovery after all other claims have been paid.

Superior Offshore, a Houston-based provider of subsea construction and commercial diving services to the crude oil and natural gas exploration and production industries and gathering and transmission industries, filed for bankruptcy on April 24, 2008. Its Chapter 11 case number is 08-32590.

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