Visit our Popular Forums

**weavis** · 19-06-2014, 13:47

https://www.youtube.com/watch?v=v7UBznKKCck

St. Elsewhere · 19-06-2014, 13:57

We just tied up at Cap Sante, and this sad vessel is looking very tall on the shore just south of the entrance. We should all appreciate the huge challenges that face those who are in the boat building business.

category4jay · 19-06-2014, 14:35

nice narrative weavis. good job.

socaldmax · 19-06-2014, 15:50

Sounds like he's trying to say that there is a lot of lost income all over the PNW due the screwup at Northern Marine.

When BP made a mistake and caused a huge oil spill, resulting in a loss of income for the Gulf of Mexico, they got sued and paid through the nose for it... in fact they are still paying on claims that are totally unrelated to the spill.

When Northern Marine made a mistake and caused a loss of income for the PNW...

they closed their doors and went out of business. Perhaps that was a wiser decision than I originally thought.

St. Elsewhere · 19-06-2014, 16:03

Quote:

Originally Posted by socaldmax

When Northern Marine made a mistake and caused a loss of income for the PNW...

they closed their doors and went out of business. Perhaps that was a wiser decision than I originally thought.

I doubt that it was a matter of a decision in the sense that they could have simply elected to stay in business. It was likely a matter of liabilities being so much greater that assets, that there was simply no possibility of continuing.

Cruiser2B · 19-06-2014, 16:29

I live and work near mile marker 0 on the ICW and there are 100's if not 1000's of these yachts passing, stopping and using facitilities near and around here each month. I believe they do bring a large amount of money into the area. Each night its not uncommon to see a different 100+ft yacht tied up to Waterside in Norfolk. I often sit there looking at them wondering where the money comes from to buy and maintain these boats.

socaldmax · 19-06-2014, 18:24

Quote:

Originally Posted by Cruiser2B

I live and work near mile marker 0 on the ICW and there are 100's if not 1000's of these yachts passing, stopping and using facitilities near and around here each month. I believe they do bring a large amount of money into the area. Each night its not uncommon to see a different 100+ft yacht tied up to Waterside in Norfolk. I often sit there looking at them wondering where the money comes from to buy and maintain these boats.

It's interesting to see where people made their money.

I met one family whose grandfather invented the rolling IV stand (doesn't tip over) and went on to make hundreds of millions in hospital equipment, almost inventing the field. His 2 grandsons enjoy the rich lifestyle with the best of everything - houses, cars, boats, RVs, vacations.

A friend of mine saw an opportunity when HOAs sprang up all over the US and were getting sued for mismanagement and embezzling. He started the first HOA fund management company and became the largest HOA management firm in the US. He doesn't go to work, his management team handles the operations, he dreams up new ways to make money.

He told his 17 yr old daughter a few yrs ago that CA had just passed legislation requiring outside oversight of local elections, balloting, etc. Straight out of high school, she started her company that basically oversaw and audited local elections, etc. Since this was a new field and there were no competitors, she could bid whatever she wanted, and always won the contract. They were required by law to hire someone, and she was the only bidder. Before she was 20, she owned a brand new BMW (cash) and had just moved into her 4500 sft custom dream house, with the interior custom decorated. She's on her way to being a millionaire before 24.

Another friend of mine owns a high end dating service. Millionaires and models. The men are screened with a list of assets and a credit report, the women are screened with a credit report and a background check to ensure she was never treated for psychiatric problems. It costs $10,000 to join the match making service, plus extra fees for each introduction. He's got a couple million or so.

Another friend owns a bicycle factory in China. He designs all of the parts here in the US, they make the parts and build them there in China. He laos has a couple million.

I know 3 real estate developers, one is big in San Diego, another is big in Phoenix and the 3rd is the big fish in the Tucson area. A friend of mine is the son-in-law of the Phoenix developer, then we discovered he was also my (now ex) GFs uncle. LOL

A very close friend of mine founded Airsis, Inc. about 20 yrs ago. A few years back, it merged with Portvision, with him retaining ownership of it all and the job title of Chief Technical Officer (lot more fun than CEO, believe me.) They just got acquired by Oceaneering, Inc. I'm guessing he's going to gross $10 - $14M on the deal. He struggled and poured his heart into it for a lot of years, so I'm really happy for him. He told me he's going to keep all of the employees there, keep the same job, but now he actually has to answer to a CEO. That's kinda funny, because for the past 7 yrs or so, he's been starting his weekend about noon on Thurs., and he's not sure if he's going to be able to keep doing that. LOL

Another friend of mine was married to a billiards mfr., she helped grow the company. When they divorced, the company was worth $22M. He told her he'd find a buyer to buy 1/2 the company as a partnership and he'd give her half of all of their properties plus $11M cash. Her counter offer was to keep the company, because a partner would only argue with him about which way to guide it. Just keep her on as a member of the board of directors at a salary of $5K/month plus free medical for life, and she'd sign the divorce papers. He was so grateful, he gave her 2 of the 3 houses ( she sold them for $1M ea)
and whenever she wants a major purchase like a houseboat, or a cabin in the woods, he still buys them for her, even though she's married to her 2nd husband. The 3 of them are very close friends.

I also know a "fixer" who says he has about $3M tucked away. He told me is retired DOJ, but still travels a lot for the State Dept., even though his business card says "Investment Advisor." Apparently when some foreign dictator or wannabe gets his nose out of joint, they send over this guy who smooth talks the dictator and gives him a bank account with a nice sum of money in it to soothe his ego. Apparently, he is well paid for handling these little errands.

The last one is a guy who is a CPA and Controller at a Big 5 accounting firm. His wife is corp. HR for another big firm, together they clear about $550K/yr. The crazy part is her father's name was Harry Dong and he started a mutual fund investment firm. When he died, it went to his wife and her assets were worth about $300M at the time, probably closer to $400M by now.

He was on the Letterman Show, due to his goofy name. He's #7 in this video countdown.

David Letterman Funniest Top 10 Ever - California Names - YouTube

BandB · 19-06-2014, 22:22

A few clarifications. First, as far as the boating industry as a whole, the future of Northern Marine or New World Yacht will barely be felt. They had no other incoming business. They've only averaged 2 boats per year. While the loss of income for employees is great, the loss of income for the PNW is insignificant. 50 employees claimed as of the closing but there were not 50 working regularly every day. On a typical day perhaps 20-30 was more common. Still sad for them, but even on the island of Anacortes, New World Yacht is small compared to the others in the marine industry there.

Second, their problems were long before this incident. There were already multiple suits against them. They already had other boats on their premises where owners were unable to get the boats finished. Boats due two years ago haven't been completed. Baden was also well past due.

This isn't the first time around in them closing. They have been through bankruptcy before. In fact that's how the current owners got involved. Now the builder of this boat, New World Yacht dba Northern Marine doesn't own the land, building, equipment or name, "Northern Marine." They are all leased. So, as to assets vs liabilities, there were virtually no assets before and plenty of liabilities. In fact, if they had this construction properly insured this would make no change in that situation.

As to their decision to close, they have no other orders coming in and they couldn't squeeze any more money out of the buyers of the unfinished boats. The previous owner of Northern Marine and until recently holder of the assets and still perhaps while not holder of record, holder for all practical purposes, and the owner of New World Yacht have already been posturing and slinging arrows at each other.

What is once more damaged is the image of the industry as employees, vendors and customers are left hanging out to dry. The only winners will be the lawyers who will fight the battles in an effort to salvage something for the buyers and others and the lawyers defending against those efforts.

Pelagic · 20-06-2014, 00:34

Quote:

Originally Posted by weavis

https://www.youtube.com/watch?v=v7UBznKKCck

Weavis.... I always get nervous when a lobbiest from any industry uses the word 'bummer' more than once in the same paragraph...

SaltyMonkey · 20-06-2014, 06:01

It will make a very nice hot dog stand

BandB · 20-06-2014, 09:02

Quote:

Originally Posted by Pelagic

Weavis.... I always get nervous when a lobbiest from any industry uses the word 'bummer' more than once in the same paragraph...

YachtVid is a paid shill. They were initially being paid to do the promotional video of the great sensational launch. Then weren't allowed to show the full video. It was stopped part way through. Now this. Any work being done on Baden is being done by invisible workers. The same workers who are finishing the other unfinished boats sitting on New World's / Northern's yard.

At least the YachtVid guy wasn't petting his dog or anything this time.

Pelagic · 20-06-2014, 09:53

You nailed it BandB.
I am assuming the Client will be salvaging/finishing his yacht with a put together team.
I wonder if there have been any liens put on the boat yet?

BandB · 20-06-2014, 10:10

Quote:

Originally Posted by Pelagic

You nailed it BandB.
I am assuming the Client will be salvaging/finishing his yacht with a put together team.
I wonder if there have been any liens put on the boat yet?

Well, there already was a lien on all the parts and equipment. It was placed by the buyer in January 2013. Based on history with other buyers I'm guessing that was when he had to advance money so New World could purchase the items. Back to 2012 New World couldn't afford $25,000 worth of materials on another boat. Right now I think all waiting to see the insurance outcome, both what is paid and who gets it. The buyer already had the boat listed for sale and certainly has no interest in it now, but might somehow end up with a choice of taking it or nothing. The buyer also wants to avoid their name being known and any publicity. They've tried hard to maintain their privacy. New World has even used the non disclosure agreement as a strategy to withhold information in the suit by another buyer of an unfinished boat.

The boat as it sits today has minimal value. All the equipment needs to be ripped out by now. All wiring. All furnishings. Then you have a structure that is subject to many questions. So do you strip down to just the hull? Well, a hull isn't worth much. What's the value of a boat that in it's current state won't stay upright? Plus, have the salvage costs been paid? I doubt it. So that attaches to it. And what about storage costs where it's sitting? It's on private land owned by real estate investors. Then the cost of moving it somewhere else to actually be able to work on it. And who would even want to be involved with it?

I think what is sitting there will ultimately be sold by someone as salvage. Just don't think anyone is going to pay much. Will the insurer total it and then own what is left? Will they only partially pay and then who owns it?

What a tangled mess. Amazing how much damage one company can do and how many people can be hurt by their actions.

Pelagic · 20-06-2014, 15:34

It is normal that contractually, the Owner carries a lien on the vessel as soon as the keel is registered and a large stage payment made to fund production.

What I am curious about is whether the physical suppliers of the equipment were fully paid?

Not a thing you worry about with Feadship.

Also, unless the Owner took out additional insurance at launch.... Builder's insurance is often totally inadequate.

Maybe different in the US?