Bouchard Transportation Co., et al.

THERE ARE DOZENS OF DEBTORS

1. Bouchard Transportation Co., Inc.
2. B. No. 205 Corporation
3. B. No. 210 Corporation
4. B. No. 215 Corporation
5. B. No. 220 Corporation
6. B. No. 225 Corporation
7. B. No. 230 Corporation
8. B. No. 231 Corporation
9. B. No. 233 Corporation
10. B. No. 235 Corporation
11. B. No. 240 Corporation
12. B. No. 242 Corporation
13. B. No. 245 Corporation
14. B. No. 250 Corporation
15. B. No. 252 Corporation
16. B. No. 260 Corporation
17. B. No. 262 Corporation
18. B. No. 264 Corporation
19. B. No. 265 Corporation
20. B. No. 270 Corporation
21. B. No. 272 Corporation
22. B. No. 280 Corporation
23. B. No. 282 Corporation
24. B. No. 284 Corporation
25. B. No. 285 Corporation
26. B. No. 295 Corporation
27. Tug Bouchard Boys Corp.
28. Tug Bouchard Girls Corp.
29. Tug Barbara E. Bouchard Corp.
30. Tug Brendan J. Bouchard Corp.
31. Tug Buster Bouchard Corp.
32. Tug Captain Fred Bouchard Corp.
33. Tug Danielle M. Bouchard Corp.
34. Tug Denise A. Bouchard Corp.
35. Tug Donna J. Bouchard Corp.
36. Tug Ellen S. Bouchard Corp.
37. Tug Evening Breeze Corp.
38. Tug Evening Light Corp.
39. Tug Evening Mist Corp.
40. Tug Evening Star Corp.
41. Tug Evening Tide Corp.
42. Tug Frederick E. Bouchard Corp.
43. Tug J. George Betz Corp.
44. Tug Jane A. Bouchard Corp.
45. Tug Kim M. Bouchard Corp.
46. Tug Linda Lee Bouchard Corp.
47. Tug Marion C. Bouchard Corp.
48. Tug Morton S. Bouchard IV Corp.
49. Tug Morton S. Bouchard Jr. Corp.
50. Tug Ralph E. Bouchard Corp.
51. Tug Rhea I. Bouchard Corp.
52. Tug Robert J. Bouchard Corp.

MULTI-JURISDICTIONAL IMPACTS

This case involves over 50 Debtors who comprise “the nation’s largest independently-owned ocean-going petroleum barge company.” They are headquartered in New York but operate in waterways throughout the United States, Canada, and the Caribbean. They have sophisticated counsel, investment bankers, restructuring advisors, and other professionals that they plan to hire.

Creditors need to be mindful of the various jurisdictions that are impacted by this case. At a minimum, creditors need to be aware that New York law will factor significantly into this case despite the Debtors’ having filed in Texas. Unsecured creditors should seek out counsel familiar with New York law.

The best thing that creditors can do for themselves is gather together, form a Committee of Unsecured Creditors, and hire counsel that can help creditors maximize their returns in this bankruptcy case. While the Debtors have indicated that they hope to pay creditors in full, they have also used wording in their papers and in the courtroom that leaves room for the Debtors to later squeeze unsecured creditors who do not have attorneys to fight for them.

If you have questions on the process of forming a Committee, about the case more generally, or if you are a creditor with a specific inquiry, please feel free to reach out to PRLT.

CREDITORS MUST BE PREPARED TO FACE POTENTIAL PITFALLS CREATED BY THE DEBTORS

The Debtors have revealed their 30 largest creditors, but they have designated eight of them as “disputed.” This is a large percent of claims and the impacts of a “disputed” designation can be catastrophic for an unwitting creditor. If the designation is not corrected by the creditor, it could be paid nothing despite being owed thousands or even millions of dollars.

The Debtors have disclosed that their major prepetition lenders are Wells Fargo and Fortress Credit Co., LLC. They have just gotten permission from the Court to take out an additional post-petition loan from Hartree Partners, LP in the amount of $60 million. The Debtors allege that their collateral is worth more than what they owe, even after the DIP loan. However, these secured lenders will be paid before general unsecured creditors and they will undoubtedly try to get the most out of the Debtors that they can. They will not care if their recovery comes at the expense of unsecured creditors.

The Debtors are involved in substantial litigation outside of bankruptcy. In fact, they filed for bankruptcy to avoid a foreclosure sale that was set to take place for some of the Debtors’ assets. They are also in a dispute with the U.S. Coast Guard over a Document of Compliance Certification (“DOC Certificate, which the Coast Guard revoked before the bankruptcy. The Debtors currently have no timeline for getting a DOC back, which means that they also have no timeline for returning to profitable operations or repaying their creditors. It will take experienced counsel to navigate the complex landscape of this case.