Luhrs, Hunter work with stalking-horse bidderPosted on
Florida-based Tiger International Management entered into an asset purchase agreement with Hunter Marine Corp., Luhrs Corp. and Mainship Corp., according to court documents posted Monday.
In whats known as a stalking horse agreement, Tiger International was approved by courts and creditors last Tuesday to become a base bidder for all assets of Hunter Marine and selected assets of Luhrs and Mainship.
Thats according to Hunter Marine president and chief restructuring officer John Peterson, who told Soundings Trade Only that the agreement is an effort to maximize the value of the assets.
Another entity can outbid Tiger International under the agreement and it inherits certain privileges if it does, Peterson said. The companies will continue to solicit bids for the corporations assets until July 3, when bidding closes. That date was pushed back a week from the originally scheduled date, Peterson said.
Eighteen entities are expressing an interest in the assets of Morgan Industries Corp., the parent company of Hunter Marine and Luhrs Marine Group, Peterson said.
Hunter Marine continues to build sailboats and it shipped three new ones Monday, Peterson said. I feel confident, not assured, but confident Hunters going to survive and come out stronger and better from what will probably be the quickest bankruptcy proceeding that can be, Peterson told Trade Only.
If Tiger does walk away with the assets, the plan is to build all of those at this facility here in Florida, Peterson said.
Whether [Tiger] markets it as Hunter or under another name, I dont know, Peterson said. It leaves Silverton kind of hanging out there, but there are some interested boat-related companies looking at that now.
The company filed April 30 for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in the District of New Jersey. The Morgan affiliates, including Luhrs, Hunter Marine, Mainship and Silverton, also filed individual petitions in which each listed its own creditor, asset and liability estimates.
In its filing, Morgan says it has between $10 million and $50 million in assets and the same amount in liabilities.
Listed debtors in the filing last week were Hunter Composite Technologies Corp., Hunter Marine Corp., Luhrs Corp., Mainship Corp., Morgan Industries Corp., Ovation Yachts Corp., Salisbury 10 Acres LLC and Salisbury 20 Acres LLC.
Look for a story about the restructuring in the July issue of Soundings Trade Only.