Luhrs, Hunter work with stalking-horse bidder

Posted 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 what’s 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.

That’s 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 corporation’s 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 Hunter’s 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 don’t 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.

— Reagan Haynes

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Is the decision to move the Miami show to the Miami Marine Stadium a good one?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password