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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA

IN RE: VIRGIN OFFSHORE USA, INC., DEBTOR

CASE NO. 11-13028 CHAPTER 11 JUDGE ELIZABETH W. MAGNER

IMMATERIAL MODIFICATIONS TO SECOND AMENDED PLAN OF REORGANIZATION DATED JULY 15, 2013 SUBMITTED BY GERALD H. SCHIFF, CHAPTER 11 TRUSTEE FOR THE ESTATE OF VIRGIN OFFSHORE, USA, INC.

NOW INTO COURT, through undersigned counsel, comes Gerald H. Schiff (the Trustee), in his capacity as the Chapter 11 trustee for the bankruptcy estate of Virgin Offshore U.S.A., Inc. (the Estate), who makes the following immaterial modifications to the Second Amended Plan of Reorganization Dated July 15, 2013 Submitted by Gerald H. Schiff, Chapter 11 Trustee for the Estate of Virgin Offshore, USA, Inc. (the Second Amended Plan),1 to-wit: Affected Party 1. The purpose of this immaterial modification is to include Chet Morrison

Contractors, LLC (CMC) as a party affected by and to receive notice of the Second Amended Plan. 2. At the October 30, 2013 hearing on Confirmation of the Second Amended Plan,

counsel for the Trustee informed the Court that the Estate intends to reserve a cause of action for breach of that certain Master Service Agreement by and between Virgin Offshore and CMC, effective as of October 18, 2012 (the MSA) and the Work Order issued by Virgin Offshore on December 5, 2012 and accepted by CMC on December 11, 2012 (the Work Order).
(R. at 452.). All capitalized terms used here, but not specifically defined, shall have the meaning ascribed to such term in the Second Amended Plan.
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3.

By letter dated September 11, 2013, the Trustee previously placed CMC on notice

of its default of the MSA and Work Order and reserved all rights and remedies afforded to it under the terms of the MSA and Work Order. The Trustee previously advised the Court of the actions taken by CMC and the reservation of rights letter sent on behalf of Virgin Offshore at a Status Conference held before the Court on September 25, 2013. 4. Counsel for CMC, Darryl Landwehr, was present at the Status Conference and

informed the Court that CMC may be due a post petition administrative claim for unpaid finance charges in the amount of $63,111.19. As of November 15, 2013, CMC has not filed an

administrative claim or otherwise appeared in these bankruptcy proceedings. 5. By submittal of this immaterial modification, the Trustee includes CMC and its

counsel Darryl Landwehr as additional parties to be noticed and served with the Second Amended Plan. Notice shall be provided to the following: Chet Morrison Contractors, LLC Address: Attention: Telephone: Fax: Email: 9 Bayou Dularge Road, Houma, LA 70363 Leroy Guidry (985) 868-1950 (985) 868-1970 lguidry@chetm.com

Darryl T. Landwehr, Landwehr Law Firm Address: Telephone: Fax: Email: 6. 1010 Common St Ste 1710, New Orleans, LA 70112 (504) 561-8086 (504) 561-8089 dtlandwehr@aol.com

Furthermore, the Trustee proposes the following immaterial modification to the

Second Amended Plan reserving all rights and remedies afforded to the Estate under the terms of the MSA and Work Order.

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Immaterial Modification 7. The Trustee hereby amends and modifies Article VI of the Second Amended

Plan by amending Section F therein to include the following additional reservation: (4) P&A Contractor Claim. Any and all claims and causes of action afforded the Estate under the terms of that certain Master Service Agreement by and between the Debtor and Chet Morrison Contractors, LLC, effective as of October 18, 2012 (the MSA) and the Work Order issued by the Debtor on December 5, 2012 and accepted by Chet Morrison Contractors, LLC on December 11, 2012 (the Work Order), including without limitation seeking recovery of all damages sustained and unnecessary legal fees and costs incurred on account of the multiple breaches by Chet Morrison Contractors, LLC, the Debtors reliance upon Chet Morrison Contractors, LLCs commitment to recommence the P&A Work upon receiving payment in full, any and all other damages sustained in connection with the Estate securing and obtaining a replacement contractor to complete the P&A Work, and any defenses to any Administrative Claim . 8. The Trustee avers that the forgoing modification is immaterial because the

modification only affects the pre-confirmation notice of the Second Amended Plan to CMC and its counsel and includes the reservation of any and all rights and remedies afforded to the Estate under the terms of the MSA and Work Order as previously reserved by the Trustees letter dated September 11, 2013. Accordingly, the immaterial modification set out herein does not affect any other party-in-interest. 9. Other than the modification set forth in this immaterial modification, the Second

Amended Plan shall remain in force and effect, and all other provisions and Sections of the Second Amended Plan remain unchanged. 10. Accordingly, the Trustee shall request a finding at the confirmation hearing,

currently set for December 13, 2013 at 9:00 a.m., that these modifications are immaterial and that pursuant to Sections 105, 1125 and 1126 of title 11 of the United States Code and Rules

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2002, 3017, 3018, 3019 and 3020 of the Federal Rules of Bankruptcy Procedure, the immaterial modifications are approved as being contained within the Second Amended Plan. WHEREFORE, the Trustee requests that this Court deems this modification of the Second Amended Plan to be immaterial as to all parties-in-interest except CMC, and that the Second Amended Plan be modified as provided herein. GORDON, ARATA, MCCOLLAM, DUPLANTIS & EAGAN, LLC By: /s/ Louis M. Phillips Louis M. Phillips (La. Bar No. 10505) 301 Main Street, Suite 1600 Baton Rouge, LA 70825 Phone: (225) 381-9643 Email: lphillips@gordonarata.com - AND Patrick Rick M. Shelby (La. Bar No. 31963) 201 St. Charles Avenue, 40th Floor New Orleans, Louisiana 70170-4000 Telephone: (504) 582-1111 Email: pshelby@gordonarata.com Attorneys for Gerald H. Schiff, Chapter 11 Trustee