Judge says Marinas International can operate after Chapter 11 filingPosted on
A federal bankruptcy judge authorized a request by Marinas International Consolidated GP LLC at a hearing on Friday allowing the company to access funds so it can continue operations after the company filed last week for voluntary Chapter 11 restructuring.
Judge Kevin Gross said allowing the company to access its funds to continue operations was in the best interests of the debtors, their real estates and creditors, according to court documents filed Friday in U.S. Bankruptcy Court in Delaware.
Banks are authorized to honor funds transfer requests made by debtors related to taxes and other charges, provided funds are available, Gross said in court documents. He also agreed to grant a motion seeking to consolidate cases among 11 properties listed in the filing by Marinas International Consolidated LP, Marinas International Consolidated II LP and Marinas International Consolidated II Ouachita LP.
Court documents filed on behalf of Marinas International showed the estimated number of creditors was between 10,000 and 25,000. The companys estimated assets were listed as being between $1 million and $10 million, and its estimated liabilities were between $10 million and $50 million.
The 90 percent majority owners, Stan Johnson and Marshall Funk, said in the original filing June 10 that given current and long-term liabilities, it was in the best interests of the company and all of its creditors to file a voluntary petition for relief under Chapter 11.
The debtors include Marinas International Consolidated LP, Marinas International Consolidated II LP and Marinas International Consolidated II Ouachita LP. Those debtors properties include 11 marinas.
Calls to Marinas International werent immediately returned.
Two of the 11 properties listed in the filing, Crystal Point Yacht Club and Manasquan River Club, were heavily damaged by Hurricane Sandy.
At Manasquan River Club, the 8- to 10-foot tidal surge came over the sea wall and knocked many of the boats off of their jack stands, leaving large boat clusters and piles of debris all around the marina, the marinas newsletter to members said. As far as damage in the water, we had about 50 percent of our docks severely damaged by heavy winds, water and debris. Some boats remained in the water, though there was still damage to many of those boats as well.
The office was virtually destroyed.
Crystal Point Yacht Club experienced damages, as well, the newsletter stated. Most of the damage being to the fuel pier, boat docks and utilities.
The marinas were working to rebuild, according to the January newsletter.
Marinas International, based in Dallas and incorporated in Delaware, is a privately held company that oversees 30 full-service marinas in seven states, according to its website.
The company signed Rust Consulting/Omni Bankruptcy as a notice, claims and balloting agent for the debtors and has retained national law firm Polsinelli to represent it in the case. Attorneys at Polsinelli didnt immediately return calls or emails for comment, and no one could be reached at Rust Consulting.
Other properties listed for restructuring by Marinas International CFO Jo Wilsmann were in Arkansas, Kentucky, Michigan, Ohio, Tennessee and Texas.
This story was updated on June 25 to reflect which companies filed the Chapter 11 request.