IN RE LYKES BROS. S.S. CO., INC.

Bankruptcy No. 95-10453-8P1.

196 B.R. 586 (1996)

In re LYKES BROS. STEAMSHIP CO., INC., Debtor.

United States Bankruptcy Court, M.D. Florida, Tampa Division.

May 9, 1996.


Attorney(s) appearing for the Case

Harley E. Riedel, Tampa, Florida, for Debtor.

Paul S. Singerman, Miami, Florida, for Official Unsecured Creditors' Committee.

Robert A. Soriano, Tampa, Florida, for Banks.

Morris D. Weiss, Miami, FL, for Genstar Container Corporation.

Robert A. Soriano, Tampa, FL, Robert J. Levine, Davis Polk & Wardwell, New York City, for J.P. Morgan Delaware, Adm. Agt.

John D. Emmanuel, Fowler, White, Gillen, Boggs, Villareal & Banker, PA, Tampa, FL, for Trans Ocean Container Corp. and Xtra, Inc./Xtra Intermodal, Inc.

Ballard Spahr Andrews Ingersoll, Baltimore, MD, for Nat'l Marine Engineers' Benefial Assn. (AFL-CIO) & District 1-PCD.

W.F. Foster, K.J. Moore, Diane Meyers, Milbank, Tweed, Hadley & McCloy, New York City, for Kreditanstalt Fur Wiederaufbau.

John W. Kennedy, Martin, Pergram & Browning Co., Columbus, OH, for Transinternational System.

Kirlin Campbell & Keating, New York City, for Interpool Ltd./Trac Lease, Inc.

John E. Bradley, Schnader Harrison Segal & Lewis, New York City, for Int'l Terminal Operating Co.

Alexander F. Vitale, Freehill, Hogan & Maher, New York City, for Maher Terminals, Inc.

Bob Westendarp, Houston, TX, for Travel Tech, Inc.

Finkel, Goldberg, Sheftman, & Altman, Columbia, SC, for SC State Ports Authority.

Michael T. Perry, Baton Rouge, LA.

Peter A. Chapman, Princeton, NJ.

Christopher I. Gruenewald, Armbrecht, Jackson, DeMouy, Crowe, Holmes & Reeves, Mobile, AL, for Container Services International.

Bernard J. Vaughan, Kenilworth, NJ, for Flexi-Van Leasing, Inc.

John T. Bright, New York City, for Oppenheimer & Co., Inc.

Mark J. Wolfson, Foley & Lardner, Tampa, FL, for American President Lines, Ltd.

Richard G. Hardy, Cleveland, OH, for Horizon Freight Systems.

Ketchey, Horan, Hearn, Neukamm, & Bauman, Tampa, FL, for First American Bulk Carrier Co., Marine Engineers Beneficial Association Pension Trust.

Kirschner, Main, Petrie, et al., Jacksonville, FL, for Suddath Van Lines, Inc.

Frances M. Toole, Washington, DC, Michael A. Cauley, Assistant U.S. Attorney, Tampa, FL, for U.S.

Andrew M. Brumby, Shutts & Bowen, Orlando, FL, for Whitney National Bank.

Patricia J. Churchill, Jefferson City, MO, Kathy R. Webb, Chief, Debt Management Division, Kansas City, MO, for Missouri Dept. of Revenue.

Robert S. Zuckerman, Charlotte, NC, for Sea-Land Service, Inc.

Craig A. Smith, Suelthaus & Walsh, P.C., St. Louis, MO, for 906 Frisco Associates.

Robert W. Blanck, Blanck & Grybowski, Miami, FL, for Seaboard Marine Ltd.

Herbert R. Donica, Evans & Donica, P.A., Tampa, FL, for Kreditanstalt Fur Wiederaufbau.

Paul E. Perry, Memphis, TN, for Farris, Mathews, Gilman, Branan & Hellen, P.L.C.

Bernard C. O'Neill, Jr., O'Neill, Chapin, Marks, Liebman, Cooper & Carr, Orlando, FL, for Louisville Cartage Company.

Jonathan L. Bookman, New Orleans, LA.

Allyson Lyles, Atlanta, GA, for International Business Machines.

William Knight Zewadski, Trenam, Kemker, Scharf, Barken, et al., Tampa, FL, for Lyon Credit Corporation.

Marsha Griffin Rydberg, Rydberg & Goldstein, P.A., Tampa, FL, for Inchcape Shipping Services, Inc.

Michael P. Cotter, Vandeventer, Black, Meredith and Martin, Norfolk, VA, for VA International Terminals.

Julia Sullivan Waters, Holland & Knight, Tampa, FL, for Malin Construction.

Barry E. Bressler, Pelino & Lentz, P.C., Philadelphia, PA, for Commercial Transportation, Inc.

Marinus Quist, New Orleans, LA, for Tidewater Marine, Inc.

Karen Fagin White, Small, White & Marani, Atlanta, GA, for Fepco Trucking, Inc.

Roland Howell, New Orleans, LA.

Stanley H. McGuffin, Sinkler & Boyd, P.A., Columbia, SC, for G & P Trucking Company, Inc.

John K. Olson, Stearns Weaver Miller, Weissler, Alhadeff & Sitterson, Tampa, FL, for Transamerica Leasing, Inc.

Arthur Steinberg, Kaye, Scholer, Fierman, Hays & Handler, New York City, for Greyrock Capital Group Inc.

John B. Stockton, Katherine Throckmorton, Stamford, CT, for Greyrock Capital Group Inc.

Julia Sullivan Waters, Holland & Knight, Tampa, FL, for BP Marine Americas.

Thomas B. Mimms, Jr., MacFarlane Ausley, Ferguson & McMullen, Tampa, FL, for Lykes Bros., Inc.

The Maritime Asbestosis Legal Clinic, a division of The Jaques Admiralty Law Firm, Detroit, MI.

Richard J. Tannenbaum, Steefel, Levitt & Weiss, Stamford, CT, for National Computer Rental, Inc.

Walter H. Lion, Maddy, Lion & Greenwood, New York City, for Safbank Line, Ltd.

C. Graham, D. Dillon, Thacher Proffitt & Wood, New York City, for American Hull Insurance Syndicate.

John D. Emmanuel, Fowler, White, Gillen, Boggs, Villareal & Banker, Tampa, FL, for Blue Water Associates L.P.

Tom C. Nord, Gatx Capital Corp., San Francisco, CA, for Blue Water Associates, L.P.

Patricia A. Redmond, Stearns Weaver Miller Weissler, Alhadeff & Sitterson, Miami, FL, for Empire Truck Lines, Inc.

John K. Olson, Stearns Weaver Miller Weissler, Alhadeff & Sitterson, Tampa, FL, Babette A. Ceccotti, Cohen, Weiss and Simon, New York City, for Masters, Mates & Pilots Plans.

Debra A. Dandeneau, Weil, Gotshal & Manges, Miami, FL, for Compania Sud Americana de Vapores.

Robin E. Riley, Iselin, NJ, for Safbank Line Limited.

Richard A. Aguilar, McGlinchey Stafford Lang, New Orleans, LA, for Mutual Life Insurance Co. of NY.

Martin G. Bunin, Reid & Priest LLP, New York City, for Mitsubishi Heavy Industries, Ltd.

Alan Kornberg, Rbrt. Drain, Paul, Weiss, Rifkind, Wharton & Garrison, New York City, for Blue Water Associates L.P.

Mark P. Hirschhorn, Gen. Cnsl., Gilman Financial Services Inc., New York City, for Blue Water Associates L.P.

Thomas E. Fotopulos, Fotopulos & Spridgeon, Tampa, FL, for Chemoil Corporation.

Lugenbuhl, Burke, Wheaton, Peck, Rankin & Hubbard, New Orleans, LA, for E.N. Bisso & Son, Inc. and Dixie Machine Welding & Metal.

Timothy J. Falcon, Marrero, LA, for Sigley Haylock.

Paul M. Nussbaum, Whiteford, Taylor & Preston, Baltimore, MD, for Phoenix Motor Express, Inc.

Timothy B. Shea, Nemirow, Hu, Kurt Tankersley, Washington, DC.

Baker & McKenzie (M. Wiedmeier), Miami, FL, for Transpac Representaciones Transpacificas, S.A. de C.V.

W. Keith Fendrick, Annis, Mitchell, Cockey, Tampa, FL, for Barnett Bank.

Meyer Orlando & Evans PC, Houston, TX, for Container Terminal/Galveston.

Honigman Miller Schwartz & Cohn, Tampa, FL, for Steelcase Financial Services.

Sharan Acker, Houston, TX, for Empire Truck Lines, Inc.

Stuart D. Gavzy, Fair Lawn, NJ, for Garfield Container Transport.

Paul Steven Singerman, Miami, FL, for Official Unsecured Cred. Comm.

Aballi, Milne, Kalil, Garrigo & Sanchez, Miami, FL, for Triton Container International.

Marsha G. Rydberg, Rydberg & Goldstein, P.A., Tampa, FL, for Landslide, Inc.

W. David Johnson, Lyons, Pipes & Cook, P.C., Mobile, AL, for Atlantic Technical Services.

Gary R. Blume, P.C., Phoenix, AZ, for ATW America, Inc.

Michael E. Boutzoukas, Gold & Resnick, P.A., Tampa, FL, for Ny-Way Service, Inc.

Zala Forizs, St. Petersburg, FL, Winthrop, Stinson, Putnam & Roberts, (Siegel), Seward & Kissel, New York City, for Mitsui Engineering/Shipbuilding Misui & Co. (USA) Inc.

Douglas D. Mancill, San Francisco, CA, for Graham & James.

Coll Davidson Carter Smith, Salter & Barkett, Miami, FL, for IBJS Commercial Corporation.

Thomas A. Giacchetto, Sr. Counsel, Boston, MA, for Xtra, Inc/Xtra Intermodal, Inc.

W. David Johnson, Lyons, Pipes & Cook, P.C., Mobile, AL, for Inchcape Shipping Services, Inc.

Michael R. Carey, Carey, O'Malley, Whitaker Manson, Tampa, FL, for Interior Design Services, Inc.

Douglas P. McClurg, Michael P. Brundage, Hill, Ward & Henderson, P.A., Tampa, FL, for Barbours Cut Intermodal Services, New Orleans Marine Contractors, Cooper/T. Smith Stevedoring, Inc.

Stephen L. Williamson, Montgomery, Barnett, Brown, Read, Hammond & Mintz, New Orleans, LA, for Marine Office of America Corp.

Jon Yard Arnason, Haight, Gardner, Poor & Havens, New York City, for Flota Mercante Grancolombiana.

Alfred Yudes, John Kissane, Watson, Farley & Williams, New York City, for Den Norske Bank A.S.

Steven M. Weinger, Kurzban Kurzban Weinger Tetzelli, Miami, FL, for Motor Svcs. Hugo Stamp, Inc.

Mary Ann Kilgore, Omaha, NE, for Union Pacific Railroad Company, Missouri Pacific Railroad Co.

Trudy M. White, Dep. Gen. Cns., Sarah Posada, Baton Rouge, LA, for LA Dept. of Revenue/Taxation.

Brett P. Furr, Taylor, Porter, Brooks, Phillips, Baton Rouge, LA, for Premier Bank, National Assn.

Allen S. Carman, Battle & Edenfield, P.A., Brandon, FL, for Stephen B. Foley, P.C., Rite-Way Transport Company, B & W International.

Catherine Peek McEwen, Akerman Senterfitt & Eidson, Tampa, FL, for Virginia Int'l Terminals, Inc., Flota Mercante Grancolombia Compania Chilena de Navegacion, Interoceanica S.A., Kansas Packing Co., Inc., and Container Applications Int'l.

Darryl M. Burman, Dicecco, Fant & Burman, L.L.P., Houston, TX, for Gulf Maritime Services, Inc.

Robert J. Philips, Bigham Englar Jones & Houston, New York City, Fireman's Fund Insurance Co.

Thomas J. Hunt, Law Offices of Thomas J. Hunt, Boston, MA, for William Bouchard.

William H. Johnson, Philadelphia, PA, for Consolidated Rail Corporation.

Julia Sullivan Waters, Holland & Knight, Tampa, FL, for Marines Repairs, Inc.

Raymond J. Urbanik, Munsch Hardt Kopf Harr & Dinan, Dallas, TX, for Anheuser-Busch Companies, Inc.

J. Stephen Simms, David O. Treadwell, Jr., Greber & Simms, Baltimore, MD, for Textainer Equipment Mgt. Ltd., International Container Equip., Moran Towing Corporation, E.I. Kane Intermodal Transport.

William C. McIntyre, P.A., Stuart, FL, for Career Enhancement Internat'l.

Donald A. Krach, Asst. Atty. Gen., Baltimore, MD, for Maryland Port Administration.

Andrew M. Brumby, Shutts & Bowen, Orlando, FL, for Prudential Insurance Co/America.

David W. Skeen, Wright, Constable & Skeen, Baltimore, MD, for Egan Marine Contracting Co.

Julia Sullivan Waters, Holland & Knight, Tampa, FL, for Malin Environmental.

David S. Jennis, Williams, Reed, Weinstein, Schifino & Mangione, P.A., Tampa, FL, for Textainer Equipment Mgt., Ltd., Int'l Container Equipment Ltd., Moran Towing Corporation, E.I. Kane Intermodal Transport.

Lawrence Landgraff, Office of the General Counsel, Washington, DC, for Pension Benefit Guaranty Corp.

Law Offices of Jacob Kansas, New Orleans, LA, for Federal Fibre Mills Condo Ass'n.

Elizabeth Blair Starkey, Cappiello Hofmann & Katz, New York City, for NMU Benefit Plans.

Lance J. Arnold, Baldwin & Haspel, L.L.C., New Orleans, LA, for Susan Kreuger.

William Knight Zewadski, Trenam, Kemker, Scharf, Barkin, Frye, O'Neill & Mullis, Tampa, FL, for Enjet, Inc., Mutual Life Insurance Co. NY.

Robert G. Skelton, Branford, CT, for The Travelers Insurance Co.

Cindy L. LoCicero, Gibbs & Runyan, P.A., St. Petersburg, FL, for Allied Van Lines, Inc.

Robert A. Schatzman, Schantz, Schatzman, Aaronson, Miami, FL, for Power Computing Company.

Richard J. Tomeny, Jr., PLC, Metairie, LA, for Premier Trucking, Inc., Trans Gulf, Inc.

Barbara A. Sprung, San Francisco, CA, for Southern Pacific Transportation.

Lamberth, Bonapfel, Cifelli, Willson & Stokes, (Stout), Atlanta, GA, for Wheels America, Inc.

Thomas J. Hunt, Boston, MA, for Martin Morrissette.

Keller & Houck, Miami, FL, for Cronus Containers Limited.

Flynn, Delich & Wise (S. Delich), San Francisco, CA, for Cronus Containers Limited.

Walter Z. Steinman, Bala Cynwyd, PA, for Roy Bodden, John C. Parker.

Richard C.E. Jennings, Savannah, GA, for Savannah Marine Consultants.

Brett D. Orlove, Grossberg, Yochelson, Fox, Washington, D.C., for Eleven Hundred Connecticut Avenue Limited Partnership.

Richard P. Lerner, Lambos & Giardino, Andre Mazzola, Gleason & Mathews, P.C., New York City, for NYSA-ILA Funds.

John A. Anthony, Shackleford, Farrior, Stallings & Evans, Tampa, FL, for Turecamo of Savannah, Inc., Turecamo Maritime, Inc., Columbia Coastal Transport, Inc., White Stack Maritime, Inc., The Port Authority of Houston.

Trey Hardin, Lane, Trohn, Clark, Bertrand, Vreeland & Jacobson, Barton, FL, for Dixie Machine Welding & Metal, E.N. Bisso & Son, Inc.

Pachulski, Stang, Ziehl & Young, Los Angeles, CA, for Flexi-Van Leasing, Inc.

Jon Yard Arnason, Haight, Gardner Poor & Haven, New York City, for Compania Chilena De Navegaci.

Thomas J. Hunt, Boston, MA, for Leon M. Banks.

Terry M. Brocklehurst, Clearwater, FL, for Capital Data, Inc.

Hendrik G. Milne, Miami, FL, for Triton Container Int'l.

Cynthia J. Thomas, New Orleans, Louisiana, for Board of Commissioners of the Port of New Orleans.

Jeffrey W. Warren, Bush Ross Gardner, Warren & Rudy, Tampa, FL, for Cooper/T. Smith Stevedoring, Crescent Towing & Salvage Co., Savannah Docking Pilots Assn.

Mr. Horst Seissinger, Federal Republic of Germany, for Kreditanstalt Fur Wiederaufb.

Collier, Shannon, Rill & Scott, (Rodgers), Washington, DC, for Special Counsel to Debtor Labor and Employee Relations.

Thomas C. O'Brien, O'Brien & Barbahen, Chicago, IL, for Illinois Ocean Unlimited, Inc.

Charles M. Meyer, Santen & Hughes, Cincinnati, OH, for TLX, Inc.

John A. Anthony, Shackleford, Farrior, Stallings & Evans, Tampa, FL, for Gulf Copper Manufacturing Corp.

Edward Morrelli, Brooklyn, NY, for the Chase Manhattan Bank, N.A.

Sher & Blackwell (R. Blackwell), Washington, DC, Lau, Lane, Peiper, Conley & McCreadie, Tampa, FL, for Special Counsel to Debtor Maritime Matters.

Jeremy O. Harwood, Healy & Baillie, New York City, for Nepomuk Shipping Co. Ltd.

Jeffrey W. Warren, Bush Ross Gardner Warren & Rudy, Tampa, FL, for Association of Maryland Pilots.

Catherine Peek McEwen, Akerman, Senterfitt & Eidson, Tampa, FL, for American Hull Ins. Syndicate.

David J. Dempsey, Coleman & Dempsey, Atlanta, GA, for 1600 Parkwood Circle Partners.

Martin F. Casey, Chalos & Brown, P.C., New York City, for W.E. Cox & Co., agt. of Equinox.

Susanna S. Piller, Stafford, Trombley Purcell Lahtinen, Owens & Curtin, Plattsburgh, NY, for F.W. Myers & Co., Inc.

Matt Beal, Lowndes, Drosdick, Doster, Kantor & Reed, Orlando, FL, for 1100 Connecticut Avenue, L.P.

Jane Wessler Marshall, Terriberry, Carroll & Yancey, New Orleans, LA.

Edward P. Flood, Chalos & Brown, P.C., New York City, for International Paper Company, Inc.

J.W. Bartlett, K.E. Wherthey, Wilson, Elser, Moskowitz, Edelman & Dicker, Baltimore, MD, for Association of Maryland Pilots.

Clarence F. Favret, III, Favret, Demarest, Russo & Lutkewitte, New Orleans, LA, for Gulf States Intermodal, Inc., Gulf States Marine Terminal, Gulf States Cartage, Inc., Star Rider Transportation, Inc.

Bill R. Bludworth, Bludworth & Associates, P.C., Houston, TX, for W.W. Rowland Trucking Co., Inc., W Winners Container Svcs., Inc., Western Container Services.

Ewell H. "Jack" Jackson, IV, Houston, TX, for Intercargo Insurance Company.

Jan M. Kuylenstierna, Tampa, FL, for Hayden & Milliken, P.A.

Dianne Coffino, Dewey Ballantine, New York City, for the Chase Manhattan Bank, N.A.

Betsy L. Benedict, Stanford R. Solomon, P.A., Tampa, FL, for SC State Ports Authority.

R. Wade Wetherington, Tampa, FL, for Biscayne Bay Pilots Association.

Michael P. Brundage, Hill, Ward & Henderson, P.A., Tampa, FL, for Stevedoring Svcs of America.

Thomas L. Johns, New York City, for ABS Oil Testing Services.

Robin S. Trupp, Anderson & Orcutt, P.A., Tampa, FL, for Tampa Port Authority.

Larry M. Foyle, Kass Hodges, P.A., Tampa, FL, for Dewey Day.

M. Brundage, D. McClurg, Hill, Ward & Henderson, P.A., Tampa, FL, for Malin Construction Company.

Montgomery, Barnett, Brown, Reed, Hammond & Mintz (Gooch), New Orleans, LA, for Aquamaster-Rauma Ltd., Pohjola Insurance Company, Ltd.

Eloise A. Guzman, Calame, Linebarger, Graham & Pena, Houston, TX, for City of Houston/HCC System.

Douglas P. McClurg, Hill, Ward & Henderson, P.A., Tampa, FL, for New Orleans Marine Contractors.

Edward P. Flood, Chalos & Brown, P.C., New York City, for LEP Profit International, Inc.

Christopher W. Parker, McDermott, Will & Emery, Boston, MA, for CSC Index Corporation.

Larry M. Foyle, Kass Hodges, Tampa, FL, for Sidney Albert Zuniga.

Edward M. Gleason, Jr., Washington, DC, for Nat'l Marine Eng. Beneficial Assn. & Dist. 1-PCD, Meba.

Edward P. Flood, Chalos & Brown, P.C., New York City, for National Cargo Bureau, Inc.

Ernest J. Marquart, Shumaker, Loop & Kendrick, Tampa, FL, for Universal AMCan, Ltd.

Darold Maxwell, Wm. V. Walker, Maxwell & Walker, L.L.P., Houston, TX, for Refrigerated Container Service, Refrigerated Container California, Refrigerated Container Systems, Refrigerated Container Miami, Refrigerated Container Charles, Refrigerated Container New Jersey.

Michael J. Korn, Korn, Zehmer & Gellatly, P.A., Jacksonville, FL, for Dalton & Rosberg Advertising.

Larry M. Foyle, Kass Hodges, Tampa, FL, for Barbara Hurst.

Nakamura & Quinn (G.N. Davies), Birmingham, AL, for Nat'l Marine Eng. Beneficial, Assn. & Dist. 1-PCD, Meba.

Barbara A. Sinsley, Trybus, Woodward & Sinsley, Tampa, FL, for Ron Colson.

Stephen M. Vaughan, Mandell & Wright, P.C., Houston, TX.

Ronald S. Beacher, Buchalter, Nemer, Fields & Young, New York City, for USL Capital Fleet Services.


AMENDED ORDER DENYING BANKS' MOTION UNDER 11 U.S.C. § 1112(b) TO CONVERT CASE TO CHAPTER 7

ALEXANDER L. PASKAY, Chief Judge.

This is a yet-to-be-confirmed Chapter 11 case filed on October 11, 1995, by Lykes Brothers Steamship Co., Inc. (Debtor). The immediate matter under consideration is a Motion to Convert Case to Chapter 7 (Motion), filed by J.P. Morgan Delaware, Morgan Guaranty Trust Co., Whitney National Bank and Premier Bank, N.A. ...

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