Trustee asks Genmar creditors to return payments - Trade Only Today

Trustee asks Genmar creditors to return payments

Author:
Publish date:

The trustee in the Genmar bankruptcy case is asking creditors who received payments within 90 days of the June 2009 filing to return those funds.

“There’s a provision under the code that if some people have been paid prior to filing and received more proportionately than other people have that then the trustee’s duty is to go after those people who received a disproportionate payment to get the money back so [it] can be redistributed proportionately to everybody,” trustee Charles Ries told Soundings Trade Only.

“It doesn’t mean that people that I’m making claims against weren’t owed the money or anything like that,” he added.

Ries said this morning he was unsure how many creditors will be asked to return payments because the accounts were still being studied.

In January 2010, Genmar's assets sold for $77.05 million, which was to go toward secured claims against the company, most notably money owed to banks. In the bankruptcy filings Wells Fargo and Fifth Third Bank were listed as being owed a combined $75 million.

The new owners purchased Genmar’s assets free and clear of liens, including any debts owed to unsecured creditors.

There were about 4,000 unsecured creditors in the case and their claims exceeded $140 million.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.