Luhrs, Hunter work with stalking-horse bidder

Author:
Updated:
Original:

Florida-based Tiger International Management entered into an asset purchase agreement with Hunter Marine Corp., Luhrs Corp. and Mainship Corp., according to court documents posted Monday.

In what’s known as a “stalking horse agreement,” Tiger International was approved by courts and creditors last Tuesday to become a base bidder for all assets of Hunter Marine and selected assets of Luhrs and Mainship.

That’s according to Hunter Marine president and chief restructuring officer John Peterson, who told Soundings Trade Only that the agreement is an effort to maximize the value of the assets.

Another entity can outbid Tiger International under the agreement and it inherits certain privileges if it does, Peterson said. The companies will continue to solicit bids for the corporation’s assets until July 3, when bidding closes. That date was pushed back a week from the originally scheduled date, Peterson said.

Eighteen entities are expressing an interest in the assets of Morgan Industries Corp., the parent company of Hunter Marine and Luhrs Marine Group, Peterson said.

Hunter Marine continues to build sailboats and it shipped three new ones Monday, Peterson said. “I feel confident, not assured, but confident Hunter’s going to survive and come out stronger and better from what will probably be the quickest bankruptcy proceeding that can be,” Peterson told Trade Only.

If Tiger does walk away with the assets, the plan is “to build all of those at this facility here” in Florida, Peterson said.

“Whether [Tiger] markets it as Hunter or under another name, I don’t know,” Peterson said. “It leaves Silverton kind of hanging out there, but there are some interested boat-related companies looking at that now.”

The company filed April 30 for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in the District of New Jersey. The Morgan affiliates, including Luhrs, Hunter Marine, Mainship and Silverton, also filed individual petitions in which each listed its own creditor, asset and liability estimates.

In its filing, Morgan says it has between $10 million and $50 million in assets and the same amount in liabilities.

Listed debtors in the filing last week were Hunter Composite Technologies Corp., Hunter Marine Corp., Luhrs Corp., Mainship Corp., Morgan Industries Corp., Ovation Yachts Corp., Salisbury 10 Acres LLC and Salisbury 20 Acres LLC.

Look for a story about the restructuring in the July issue of Soundings Trade Only.

— Reagan Haynes

Related

Future Sales Focal Point

This month’s Pulse Report survey asks if inventory levels and other concerns will be a factor in boat-show participation. Take the survey here.

ABYC Releases ‘Largest Update’ of Standards

The 61st supplement of its Standards and Technical Information Reports for Small Craft includes electric propulsion and electrical systems.

Fort Myers Tech Receives Training Support

Yamaha and the Marine Industries Association of Southwest Florida and Tampa Bay donate to the college’s new maintenance certification program.

LCI Reports Record Q2

The parent of OEM supplier Lippert Components saw a 108 percent increase in net sales to $1.1 billion.

Cox Marine Addresses the Supply Chain

The diesel outboard manufacturer brings all sub-assembly production in-house to obviate delivery issues.

Boat Shows and Dealer Week Are Calls to Action

Shows are one of the best ways to connect face-to-face with customers, and MRAA’s signature conference can give insights into achieving retail success.