Details emerge in Luhrs bankruptcy filingPosted on
Morgan Industries Corp., the parent company of Hunter Marine and the Luhrs Marine Group, said in its bankruptcy filing that it has between $10 million and $50 million in assets and the same amount in liabilities.
The parent company filed a voluntary petition for Chapter 11 bankruptcy protection Monday in U.S. Bankruptcy Court in the District of New Jersey.
Entities listed in the filing were: Hunter Composite Technologies Corp.; Hunter Marine Corp.; Luhrs Corp.; Mainship Corp.; Ovation Yachts Corp.; Salisbury 10 Acres LLC; Salisbury 20 Acres LLC; and Silverton Marine Corp.
The filing by the parent company indicated between 50 and 99 creditors. Morgan Industries lists the largest creditors holding unsecured claims as Textron, which has a claim of more than $1 million, as well as several law firms and other entities.
The other entities, including Luhrs, Hunter Marine, Mainship and Silverton, also filed individual petitions in which each listed its own estimated number of creditors, assets and liabilities.
“The business reorganization is intended to bolster liquidity, fairly resolve legacy liabilities and enable the company to focus on its most valuable business lines and assets,” according to a statement released by its advisers. “In conjunction with the filing, the company filed first day motions that will allow it to continue to manage operations in the ordinary course. The company has obtained a fully committed, post-petition debtor-in-possession credit facility from Bank of America to enhance liquidity and working capital.
“The company will evaluate options ranging from a standalone plan of reorganization or a capital infusion through a plan of reorganization or funding sponsor or acquirer,” the statement said.
The company is being advised by Robert Hirsh and George Angelich of Arent Fox LLP as bankruptcy general counsel; Capstone Advisory Group LLC as financial advisers; Katz, Kane & Co. as investment bankers; and Donlin Recano & Co. Inc. as claims agent.
Hunter Marine president and chief restructuring officer John Peterson told Soundings Trade Only on Monday that the powerboat operations — Silverton, Luhrs and Mainship — ceased operations in January. Florida-based Hunter Marine, the sailboat builder, has never shut down production, he said, and continues to be up and running.
As for Hunter, Peterson said, “Our orders are fairly strong right now. I think things are going fairly well [for Hunter]. We could certainly pay for ourselves on an ongoing basis, but we could not pay for the whole group on an ongoing basis.”
There are “numerous” entities interested in buying Hunter and other assets, Peterson added.
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