Sale gets OK

Bender Shipbuilding's Mobile yard

A federal bankruptcy judge has approved Bender Shipbuilding & Repair's deal to sell its Mobile yard to compatriot Signal International, according to court documents.

In an order giving the deal the green light, Judge Margaret Mahoney writes that the $31.3m transaction is "in the best interests of the debtor, its creditors, its estate and other parties in interest."

As TradeWinds has reported, Signal international beat out an initial bid of $21m for many of the assets of bankrupt Bender Shipbuilding, which filed for Chapter 11 protection in July.

Mahoney writes in her order that some of the proceeds will be used to pay Prudential Insurance Company and Overseas Shipholding Group's Maritrans arm, as well as to pay VT Halter Marine parent Vision Technology Systems a $800,000 fee for making the initial "stalking horse" bid.

Mobile-based Signal International, a marine fabricator and repair company that gets much of its business from offshore rig work, says the Bender assets will complement its offshore and heavy fabrication activities.

The company says it plans to pump $5m worth of upgrades into the Bender yard and employ additional workers over the next 18 months.

The deal gives Signal 1,000 metres off shore frontage, six repair and construction yards and three floating dry docks.

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