On July 6, when Kadey-Krogen Yachts and theur sister company American Tugs filed for Chapter 7 bankruptcy, there were at least six or seven owners who had placed deposits and we awaiting delivery of their new dream boats. It least one of the boats in build had been paid in full in advance.
Now, in the aftermath, those owners are left in the lurch and are understandably upset and angry. They have lost sizeable amounts of money and had their cruising dreams dashed, at least for the tie being.
A chapter 7 bankruptcy calls for the liquidation of all the company’s assets for distribution to those with valid claims against the company and presumably the owners will be on that list. This is unlike a chapter 11 bankruptcy under which a company can continue operations as it reorganizes this debt and finances.
Soundings Trade has a full report in a recent issue.
Read more here.
