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  • roy_ep roy_ep Feb 13, 2011 6:47 PM Flag

    If the merger paid all debts why file?

    Bankruptcy lawyers cost big money. Are they trying to break contracts? Big lawsuits? We will not know the story until we see some court documents.

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    • they only have to have courts approval not shareholders. they know it is inevitable and just cut the losses and went down the road

      • 1 Reply to jimdon2
      • I also think it's intimately tide to the Pride International spinoff and lawsuit as well as the Mexican tax situation. There has been a lot legal wrangling back and forth between Seahawk and Pride and Seahawk and the Mexican government. The bankruptcy may be a way of avoiding paying taxes Mexico claims Seahawk owes and a way of forcing the issue with Pride about who owes whom what. The court will decide the Pride matter definitively one would think. Also, one poster said that Pride still owns significant shares of Seahawk and would not approve the acquisition in the normal route. So this may have also been a strategy to circumvent Pride and avoid a shareholder vote on the acquisition. All of which is to say, the complexities of the situation indicate that Seahawk's common stock value will not necessarily go to zero as some posters say. This is a very unusual deal.