Judge OKs Genmar auction resultsPosted on
A bankruptcy court judge in Minnesota Wednesday approved all bids for Genmar’s assets, chief restructuring officer Mark Sheffert said.
The sale will officially close Jan. 20.
California-based Platinum Equity purchased the majority of Genmar Holdings’ assets for $70 million. J&D Acquisitions purchased Carver and Marquis for $6.05 million. And MCBC Hydra Boats, a subsidiary of Wayzata Investment Partners, purchased Hydra-Sports for $1 million.
J&D Acquisitions is a company founded by Genmar founder Irwin Jacobs and billionaire businessman John Paul DeJoria. Wayzata Investment Partners also owns MasterCraft Boat Co.
Mark Barnhill, a principal with Platinum Equity, said in an e-mail this morning he could not comment because “the transaction has not yet been completed and remains under the supervision of the U.S. Bankruptcy Court. Until the sale is completed, it would be premature and inappropriate to discuss any operational plans for the business.”
The Official Committee of Unsecured Creditors had asked the judge to set aside the results of last week’s auction or, alternatively, deny approval of Jacobs’ bid for the Carver and Marquis lines.
The committee said it appears the aggregate amount of the prevailing bids will not satisfy the secured claims, the Chapter 11 administrative expense claims, and will provide nothing for the prepetition unsecured creditors as a group.
There are an estimated 4,000 unsecured creditors that are owed more than $100 million, according to court documents.
The committee also objected to the decision to award J&D Acquisitions the winning bid for the yacht group brands and the facilities in Pulaski, Wis., over an identical bid made by Genmar Yacht Acquisition, which the committee said is an affiliate of Patriarch Partners LLC.
GYA also filed its own objection in the case.
“The committee’s objection is nothing more than anger directed at an individual owner of a bankrupt debtor who is not legally responsible to pay the debtors’ debts to unsecured creditors, who may, unfortunately, go unpaid,” J&D said in court papers.
“Genmar went bankrupt because of economic conditions,” the document continued. “Mr. Jacobs and other entrepreneurs cannot change that, but they can attempt to rebuild the businesses that have been lost.”
— Beth Rosenberg