Hudson Yachts & Marine Industries, Hudson Wang and Gunboat International Ltd. said they amicably settled all issues between them, including a pending lawsuit Gunboat International filed and counterclaims filed by Hudson Yachts & Marine Industries.
The companies said the settlement is subject to bankruptcy court approval. The terms of their agreement remain confidential, according to a statement.
The companies said both sides worked in good faith to discuss and resolve all pending matters “during this difficult time” and that Gunboat International “wishes Hudson Yachts & Marine Industries every success with its new line of yachts under the HH Catamarans brand.”
HH Catamarans builds carbon fiber, high-performance cruising catamarans. HH catamarans are designed in California and built in Xiamen, China.
The semicustom line of 55- to 115-foot models is a collaboration among America's Cup-winning design team Morrelli and Melvin, boatbuilder Hakes Marine and Hudson Yachts & Marine.
Gunboat International, a North Carolina builder of luxury carbon fiber sailing catamarans, sued the yard in China that it had contracted to build its largest models, saying some work was never done and that the yard refused to pay warranty claims on other poorly constructed yachts it had built — allegedly costing the company about $10 million.
Hudson Yachts & Marine Industries Inc. “vehemently” denied allegations in a lawsuit filed in U.S. District Court in Rhode Island by Gunboat International that alleged HYM produced subpar Gunboat models, refused to perform warranty work on them and then launched a competing “knockoff” brand.
Grand Large Yachts bought Gunboat International out of bankruptcy last spring for $910,000 in cash.