Genmar Holdings is asking a bankruptcy court judge to allow it to sell property it owns in Oregon, where it previously manufactured Seaswirl boats.
The sale will bring in approximately $29,870, which will be used to pay the senior lenders under the DIP loan, Genmar said in court documents filed this week.
Macy Farms has agreed to purchase the Culver, Ore., property for $31,770, and approximately $1,900 of that will go toward brokerage fees.
"The sale will allow debtors to realize the highest value from their properties, will limit costs associated with assets that are no longer necessary for the debtor's ongoing business operations, and will allow debtors to pay down their obligations to their senior lenders and halt continuing interest," Genmar said in its motion.
A hearing on the motion is set for Nov. 16.
Genmar purchased the property in 2001 from the bankruptcy estate of Outboard Marine Corp., and it was used to build Seaswirl boats until March 2007 when Seaswirl was merged into Genmar Minnesota and manufacturing operations were moved to Little Falls, Minn.