Premier Marine, builder of Premier Pontoons, says its reorganization is on track and that it’s going into its dealer meeting, slated for August, with a solid backlog.
The company filed for Chapter 11 bankruptcy protection on June 19 in U.S. Bankruptcy Court in Minnesota, listing estimated liabilities of $10 million to $50 million owed to between 200 and 999 creditors, including more than $6.5 million owed to American Bank of the North. Premier cited a failed acquisition as the cause for the filing.
“With regard to the Chapter 11 filing we were granted the petition on June 22 to utilize the $2.5 million capital line and have been very busy buying the necessary parts to fulfill orders,” Premier president Lori Melbostad told Trade Only Today.
On July 11, the company received an official agreement, with regard to its operating budget, from the creditor committee, the company’s lender and its primary bank to continue using those funds through the end of October, Melbostad said.
“The timing of the October approval coincides with our next steps in the reorganization,” Melbostad said.
The company expects to confirm a reorganization plan with the support of its creditors between Nov. 1 and Dec. 31.
Read more about the Premier update in the August issue of Trade Only Today.