I thought the original purpose of the thread was to alert folks who may be thinking of buying
a Hunter to be careful about handing over large dollops of cash to a firm that has problems.....hence the original thread title.
I guess there is a reason that CF changed the thread title to something that won't clearly give a heads up to potential Hunter buyers.........
Although not an expert on US Chapter 11, IME when a parent company is facing financial problems it does tend to grab as much help (cash!) as it can from every last corner of a group to try and buy time, mostly perfectly legally. and usually by the time anything formal happens cash flow is stuffed, spare cash is gone, assets either don't exist anymore or have been secured against borrowing (to a bank / finance company)....for the whole group. Simply being profitable will not automatically save a business.
Suppliers tend to know fairly early when a firm is in trouble (delayed / extended payments are the main clue - plus good old fashioned gossip!) - and once that happens can be a self fulfilling prophecy from the impact on cash flow (not enough supplies = not enough product = not enough sales = not enough cash, and that even before customers start to hold back). Companies don't tend to say "we are in a world of sh#t and would be very surprised if we survived", at least not whilst they are still paddling hard.
Whether the Hunter Sailing boat subsidiary is techinically covered by the Luhr Marine
Group Chapter 11 is (IMO) a moot point (albeit I would be surprised if it wasn't - or won't soon be).
I will also concede that I don't know what the usual MO is for folks in the US / with Hunter buying
new boats - is it cash on delivery
? Unsecured Stage Payments (aka unsecured lending = back of the Q as a creditor!) or Stage Payments secured against a specific hull
, so that at least a buyer would get some sort of boat (even if only half of one!). When a boat builder
goes pop (at least in the UK) always seems to be some buyers who are left holding the baby, at least in part - and are surprised that simply handing over large amounts of cash to people about whose financial situation they know little has gone badly
. Same old story, everything is good - until it is not.
From the bits I have read (very little!) seems that the Hunter yacht end of the business has a future and that the buyers could well come out of it with a boat they have paid for. Could
. Can't say I would be passing over large dollops of my cash at Hunter (or any company in that situation) at the moment though.....but that each to their own.