Luhrs Marine Group in Chapter 11

[avb3]

Guess the hangover from the recession is still affecting companies. Hopefully no one will lose any deposits, and hopefully they come out of it.
Luhrs Marine Group files for bankruptcy protection | MilitaryFeed.com

[sailorboy1]

The title of the thread is wrong; Hunter Marine hasn't filed, Luhrs Marine Group has. The article states that the Hunter side of the business is running with higher back orders than the past couple of years.

Sounds like the problem is the power boat side of the business.

[avb3]

Originally Posted by Don Lucas

The title of the thread is wrong; Hunter Marine hasn't filed, Luhrs Marine Group has. The article states that the Hunter side of the business is running with higher back orders than the past couple of years.

Sounds like the problem is the power boat side of the business.

Don, Hunter is owned by Luhrs. As such, unsecured creditors (which would include those who made deposits) are at risk. Warranties are at risk, as those are contingent liabilities that any re-organization, especially if it were to be sold, is something an ownership group would want to dump.

I would certainly take anything that is said by management with a grain of salt right now. When they shut down production of the power boats, they said they were just building up an order bank.

Hunter Marine will likely come out of this in some fashion - what that will look like is way to early to tell.

[h20man]

A corporate subsidiary is separate from its parent. It is its own 'legal person'. That is the whole point of corporations.
So. Unless the subsidiary filed for bankruptcy.. all is ok.. just its 100% owner filed.

I do not believe based on this article that ANY Hunter sailboat owners will feel any consequences, (other then the parent will not be sucking money out of the child to fund the powerboat business).

I am Not associated with hunter in any way.. so these are just observations of what is being said in the article.

[avb3]

Here is the actual filing of Morgan Industries, the parent of Luhrs Marine Group. Interesting is the org chart included.

Hunter Marine is definitively included in the filing, and listed as such.

[tropicalescape]

Originally Posted by avb3

Don, Hunter is owned by Luhrs. As such, unsecured creditors (which would include those who made deposits) are at risk. Warranties are at risk, as those are contingent liabilities that any re-organization, especially if it were to be sold, is something an ownership group would want to dump.

I would certainly take anything that is said by management with a grain of salt right now. When they shut down production of the power boats, they said they were just building up an order bank.

Hunter Marine will likely come out of this in some fashion - what that will look like is way to early to tell.

Read like an advert. for a new buyer for the sailboat division...sounds like a good time to get a boat factory in NJ and start servicing some DOD requests for the near future...DVC

[missnmountains]

Originally Posted by h20man

A corporate subsidiary is separate from its parent. It is its own 'legal person'. That is the whole point of corporations.
So. Unless the subsidiary filed for bankruptcy.. all is ok.. just its 100% owner filed.

I do not believe based on this article that ANY Hunter sailboat owners will feel any consequences, (other then the parent will not be sucking money out of the child to fund the powerboat business).

I am Not associated with hunter in any way.. so these are just observations of what is being said in the article.

I do not believe this is correct. ALL assets of the debtor are subject to creditor claims. That includes the equity in subsidiaries. For example, let's say you filed chapter 13 and you owned a $1,000,000 of GE stock. The creditors would take those shares.

Ken

[pz5r9n]

Luhrs Marine Group Announces The Commencement Of Proceedings Under Chapter 11 Of
The Bankruptcy Code
PR Newswire
ALACHUA, Fla., April 30, 2012

ALACHUA, Fla., April 30, 2012 /PRNewswire/ -- Morgan Industries Corporation, the
parent company of Hunter Marine Corporation and the Luhrs Marine Group family of
boat manufacturing businesses, announced today that it and its U.S. subsidiaries
(the "Company") filed voluntary petitions for chapter 11 business reorganization
in the United States Bankruptcy Court for the District of New Jersey.
The Company is a global leader in the production of recreational powerboats and
sailboats under the iconic brand names of Hunter Marine, Silverton, Ovation,
Luhrs, and Mainship. The business reorganization is intended to bolster
liquidity, fairly resolve legacy liabilities, and enable the company to focus on
its most valuable business lines and assets.
In conjunction with the filing, the Company filed first day motions that will
allow it to continue to manage operations in the ordinary course. The Company
has obtained a fully-committed, post-petition debtor-in-possession credit
facility from Bank of America to enhance liquidity and working capital.
During the initial stages of the chapter 11 proceedings, and as the recreational
boat market and business segment continues to improve, the Company will consider
its strategic and transactional alternatives. The Company will evaluate options
ranging from a standalone plan of reorganization, or a capital infusion through
a plan of reorganization or funding sponsor or acquirer.
The Company is being advised by Robert Hirsh and George Angelich of Arent Fox
LLP as bankruptcy general counsel; Capstone Advisory Group, LLC as financial
advisors; Katz, Kane & Co. as investment bankers; and Donlin Recano & Company,
Inc. as claims agent.
More information about the Company's chapter 11 filing is available at
donlinrecano.com/morganindustries. Information for vendors and suppliers is
available at (386) 462-3653. Information for dealers is available at (386)
462-3616.
SOURCE Arent Fox LLP; Luhrs Marine

[dennisjay]

Guess all the mergers and acquisitions over the years didn't cushion them for the down economic times. Powerboat manufacturers are suffering especially hard, I've read, because the high price of fuel is reducing demand.

[Curmudgeon]

Morgan Industries Corporation, the parent company of Hunter Marine (sailboats) and Luhrs Marine (power boats) filed for Chapter 11 bankruptcy reorganization on Monday in U.S. Bankruptcy Court for the District of New Jersey.

According to reports the sailboat business is doing ok but the power boat business went into the toilet following the 2008 recession.

[sarafina]

Hi, We had three different threads on this which have been combined for ease of communication!

[djmarchand]

As I understand it, the only difference between Hunter and its corporate siblings is that Hunter is still producing and selling boats. The others are not and I would suspect that they never will.

Morgan/Luhrs/Hunter will probably either be reorganized where the debts are forgiven and with new financing Hunter will continue in business or Hunter will be sold and the other assets/companies liquidated. The former is roughly what happened with GM and the latter is roughly what happened with Chrysler.

David

[rebel heart]

hunters, lol

[avb3]

Originally Posted by rebel heart

hunters, lol

As opposed to Hans Christians that were rescued out of bankruptcy by some firm from Thailand?

The boats may be apples and oranges; the financial situation, similar.

[rebel heart]

Originally Posted by avb3

As opposed to Hans Christians that were rescued out of bankruptcy by some firm from Thailand?

The boats may be apples and oranges; the financial situation, similar.

Plenty of companies have financial problems but some of them build great boats on top of that.