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Just found this in "The Log"
Pacific Seacraft Faces Liquidation under Chapter 7 Bankruptcy
Thursday, August 09, 2007
Sailboat builder was twice cited by Fortune magazine as a maker of 'America's best products.'
LOG NEWS SERVICE - Financially troubled Pacific Seacraft Corp., which says activity at its plant has continued at a reduced level since it filed for Chapter 11 protection from its creditors in May, now faces the prospect of a court-ordered Chapter 7 liquidation of its assets.
An attorney for the Office of the U.S. Trustee in Santa Ana has filed a notice of motion to convert the case to one under Chapter 7 for "cause" or alternatively have the court appoint a Chapter 11 trustee to oversee the operation of the firm during its reorganization.
In its notice of motion to convert, which was filed in the U.S. Bankruptcy Court, Central District of California, in Santa Ana on July 3, the trustee's office said cause existed for several reasons - including the failure of Pacific Seacraft Corp. to list one of its largest unsecured creditors, who is owed $775,000.
A spokesman for the trustee's office told The Log News Service on Aug. 2 that the hearing on the trustee's motion to convert, originally scheduled for Aug. 8, has been rescheduled to Aug. 22.
In a July 16 company letter, Fullerton-based Pacific Seacraft Corp. reported that "activity at the plant has continued at a reduced level" since it was forced to seek Chapter 11 protection.
The firm's director of marketing Jerrold "Jerry" Cann said in the letter that a number of boats were on order and under construction at the time of the bankruptcy filing. He said that one of those boats, a Pacific Seacraft 31, left the plant July 16 for one of the firm's Southern California dealers.
Cann also said that since filing for Chapter 11 protection, the firm's management has been focusing on discussions with several parties interested in seeing the brand name continue into the future.
"We realize that 'no news' can easily be assumed to be bad news," Cann said. "Our efforts are ongoing and continuous, but also subject to court approval - and there are some legal limitations on what we can report. The outcome is not completely in our hands, nor is it 100-percent predictable."
The corporation, led by Allan Poole, its president and CEO, specializes in fiberglass cruising sailboats. It has twice been named by Fortune magazine as a maker of "America's best products."
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