Join Date: Feb 2010
Location: Narragansett Bay
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Re: Hauled Out & Marina Closes, What Happens?
Wow. Most of the above is guesswork and common sense, but may have no relation to the bankruptcy laws, wherever you are. Presumably NJ?
First, it will depend on what type of bankruptcy they file for. If a reorganization, they will remain open and try to have the courts reduce their unsecured debts. If liquidation, they will close and a court appointed receiver is usually appointed to maintain value in the property or business for the creditors.
If you've prepaid anything, you may be one of those unsecured creditors in the reorganization. They owe you and are asking the courts not to have to pay. Generally, however, if they are trying to remain in business, it isn't their customers they are trying to shake off.
If liquidating, its substantially more complicated. If the bank financed the property, they have zero interest in your boat or whatever deal you made with the marina. They lent on the real estate and need the collateral value from it. They didn't get into the deal as a partner in the marina business. Often marinas are more valuable as waterfront property, so keeping marina customers may be of little concern. If, however, they see selling the property to another operator as the most likely outcome, they may try to maintain the relationships. Remember, they won't have the money you paid, so anything they spend to keep staff or operate lifts is coming out of their pocket. That is going to have to make economic sense for them to do it. In most cases, I will bet it doesn't.
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In the harsh marine environment, something is always in need of repair. Margaritas fix everything.