Hunter Marine Continues Building Boats as Stalking Horse Bidder Is Named
At the end of May, Florida-based Tiger International Management entered into an asset purchase agreement with Hunter Marine Corp., Luhrs Corp. and Mainship Corp., according to court documents posted recently.
In what’s known as a “floor bidder” or “stalking horse agreement,” Tiger International was approved by courts and creditors to become a base bidder for all assets of Hunter Marine and selected assets of Luhrs and Mainship.
Hunter Marine president and chief restructuring officer John Peterson, explained in an interview that the agreement is an effort to maximize the value of the assets.
Apparently, another entity can outbid Tiger International under the agreement and it inherits certain privileges if it does, Peterson said. The companies will continue to solicit bids for the corporation’s assets until July 3, when bidding closes. Peterson stated that the date was pushed back a week from the originally scheduled date, and Peterson said that eighteen entities are expressing an interest in the assets of Morgan Industries Corp., the parent company of Hunter Marine and Luhrs Marine Group.
Peterson made it clear that Hunter Marine continues to build sailboats and it shipped three new ones last week.
“I feel confident, not assured, but confident Hunter’s going to survive and come out stronger and better from what will probably be the quickest bankruptcy proceeding that can be,” Peterson told a US trade media outlet.
The company filed April 30 for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in the District of New Jersey. The Morgan affiliates, including Luhrs, Hunter Marine, Mainship and Silverton, also filed individual petitions in which each listed its own creditor, asset and liability estimates.
In its filing, Morgan says it has between $10 million and $50 million in assets and the same amount in liabilities.
