Judge says Marinas International can operate after Chapter 11 filing


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 company’s 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 weren’t 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 marina‘s 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 didn’t 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.

— Reagan Haynes

This story was updated on June 25 to reflect which companies filed the Chapter 11 request.


MarineMax Posts Record Q2

Coming off its most profitable fourth quarter, first quarter and fiscal year, the company continued to roll with a 70 percent increase in revenue.

MMTA Lands State Grant

Massachusetts Marine Trades Association will use the $20,000 recovery grant to promote its “Stay Local Boat MA” program.

Hundreds Stream ABC

Topics of discussion during Day One of NMMA’s virtual American Boating Congress included policy updates, infrastructure, the global supply chain and more.

Next Stop, Key West

The Moorings adds the Conch Republic to its roster of charter bases.

IBEX to Host Supply Chain Webinar

The April 29 session will address logistical issues that continue to impact manufacturers amid strong customer demand.

Safety is no Accident

Sure, it’s a cliché, but it’s 100 percent accurate. With boats going in the water for a new season in many areas, dealers should wave the safety flag wide and high, especially for the newcomers.

Brunswick Recognized for Diversity

Forbes ranks Brunswick as one of the top employers for diversity for the second consecutive year.

ABYC names Content Director

Sarah Devlin will support ABYC’s events and communications, distributing content through various channels.

Ferretti Group Reports Strong Q1

The conglomerate saw revenues increase by 40 percent, with a record 56 yachts launched in the first quarter.