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BANKRUPTCY COURT APPROVES SEA STAR’S ACQUISITION OF NAVIERAS

BANKRUPTCY COURT APPROVES SEA STAR’S ACQUISITION OF NAVIERAS

   At a hearing this week, a U.S. Bankruptcy Court has approved a proposal by Sea Star Line, LLC, to acquire the ships and assets of Navieras/NPR Inc., which is part of the Holt Group.

   Sea Star's bid is pending the results of a public auction later this month, at which anyone may offer a higher bid than the $32 million for Navieras proposed by Sea Star. All bids must be submitted to the court in Wilmington, Del., by April 22. The public auction is scheduled on April 24. A sale hearing on the NPR assets is set for April 25, and the Holt Group hopes to close the sale by April 26.

   The proposed sale would permit a $500,000 breakup fee payable to Sea Star should the Navieras assets be sold to a third party at the auction.

   'Sea Star has agreed to put up a deposit of $250,000, returnable only if the assets are sold to a third party, or if now unmentioned environmental concerns surface.

   Sea Star, based in Jacksonville, Fla, is also likely to get its deposit back, sources say, if a preliminary determination last week by an attorney in San Juan that the Navieras terminal in Puerto Rico cannot be a transferable asset holds up in court and sinks the deal.

   U.S. Judge Mary F. Walrath also approved bid procedures for assets of the Holt Group’s Murphy Marine unit. Thomas Murphy, of the Holt Group, submitted a ‘stalking horse’ bid of about $1.5 million for Murphy Marine.

   Referring to Sea Star’s bid, Tom Holt Jr., president of Navieras, said “the expedited sale timeline approved by the court will help make this a seamless transition.”