Six Sealine yachts are being liquidated after the company was forced into Chapter 7 bankruptcy and effectively abandoned the vessels, documents filed in U.S. Bankruptcy Court show.
The six yachts have a total dealer cost of $4,963,830 and an MSRP of $6,958,719. Current offers on the vessels total $2,720,000, court documents show.
On Tuesday, the court approved what are known as “stalking horse bidders” on five of the yachts, said Peter Schmidt of United Yacht Sales, one of the creditors who joined to force the company into bankruptcy after its U.K.-based parent company went under and outstanding debts remained unpaid.
“We’ve been acting as brokers to get this done,” Schmidt told Trade Only Today. “The trustee approved them. The court approved them. From now until Aug. 16 others can submit bids — the second bid has to be $25,000 more than the one that’s already been accepted. We’ve already got people out there who will outbid these offers.”
Schwartz said all creditors should be paid — if not in full, then close to it.
“They’re pretty good offers, surprisingly,” Schwartz said. “It’s basically 50 cents on the dollar. The reason why these boats weren’t selling is they were overpriced. They’re nice boats, but they’re too expensive.”
Court documents show the marinas that are maintaining the vessels are owed mounting costs, as well; that was after the yachts’ trustee filed a motion in court that said the vessels were “deteriorating from the outside” after being basically abandoned.
“They were [deteriorating] because no one had been cleaning them since the initial bankruptcy back in April,” Schwartz said. “Until a court order around two weeks ago, still nobody was cleaning them. You just don’t let boats sit around in the summer in Florida and expect them to do well.”
As far as the requests to liquidate the boats quickly, “the 2014 models will be out in another month, and now we’re dealing with another problem,” Schwartz said. “Not only are they not new boats without a warranty from the manufacturer, they’re one-year-old boats in another month. I spoke with the trustee about that and he agreed that the longer they sat around, the less they would bring in.”
Final bids on the boats must be submitted to the court by Aug. 16. A hearing to make the final sales official will take place Aug. 22.
— Reagan Haynes