PSC is dead, assets to be auctioned off
A federal bankruptcy judge has authorized the public auction of the assets of financially troubled Pacific Seacraft Corporation.
It was the latest in a series of legal setbacks for the Fullerton-based sailboat manufacturer since it filed for Chapter 11 protection from its creditors in May.
In a motion filed July 3 with the U.S. Bankruptcy Court in Santa Ana, U.S. Trustee Peter C. Anderson asked the court to convert the case to one under Chapter 7 "for cause" - or, as an alternative, appoint a Chapter 11 trustee to oversee the operation of the firm during the Chapter 11 reorganization.
The motion said "cause" existed for several reasons, including the failure of the debtor, Pacific Seacraft, to list one of its largest unsecured creditors, to whom it owed $775,000.
The bankruptcy judge chose the alternative and ordered the appointment of a trustee to oversee the operation of Pacific Seacraft.
Anderson, who as a Justice Department official monitors bankruptcy cases for the federal government, chose James J. Joseph as the Chapter 11 trustee to oversea Pacific Seacraft.
Based on his assessment that Pacific Seacraft had effectively ceased to operate after filing Chapter 11 in May, Joseph subsequently filed a motion in bankruptcy court for authority to sell the firm's assets.
Joseph, a member of a Los Angeles-based law firm, told The Log News Service Aug. 30 that the court had approved his motion and that he would employee an auctioneer to proceed with the sale of the firm's assets. The sale is currently scheduled to be held Sept. 18 at the firm's former location in Fullerton, Joseph said.
Jerrold "Jerry" Cann, the firm's director of marketing, said in a July 16 release that the firm's management had been focusing on discussions with several parties interested in seeing "this powerful brand name continue." A source said Aug. 29 that those "parties" had been unsuccessful in their efforts to raise money.
Calls to the telephone number listed on Pacific Seacraft's Web site for its Fullerton plant and office were answered with a recorded message that the number had been disconnected.
1978 Tayana 37
Freedom comes when youíre ready to sail away. True freedom comes when you donít have to return
Cut off from the land that bore us, betrayed by the land we find, where the brightest have gone before us and the dullest remain behind, .......but stand to your glasses, steady,.......tis all we have left to prize, raise a cup to the dead already, hurrah for the next that dies
Last edited by poopdeckpappy; 09-06-2007 at 03:42 PM.