In the two months since Pacific Seacraft Corp was forced to seek Chapter 11 protection with the courts, activity at the plant has continued at a reduced level. A significant number of boats were on order and under construction at the time of the filing. Marking a milestone and symbolizing the commitment of management to the Pacific Seacraft brand name, the latest Pacific Seacraft (31-129) has just left the plant today, destined for our Dana Point, California dealer, Dream Catcher Yachts.
During this difficult period, management has been focusing on discussions with several parties interested in seeing this powerful brand name continue well into the future. Current management is anticipating a mutually acceptable agreement followed by the court’s approval of the reorganization plan in August or September.
We realize that “no news” can easily be assumed to be bad news. 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% predictable. We prefer to give you accurate news and assessments. In the ensuing few weeks we will be able to report to you more fully (and confidently) on the future of Pacific Seacraft.
Jerry Cann
Director of Marketing
Pacific Seacraft Corporation.
The PS spokesman says "Current management is anticipating a mutually acceptable agreement followed by the court’s approval of the reorganization plan in August or September".
__________________ The next best thing
To playing and winning is playing and losing.
Robert Lee Castleman
Current word on Sailing Anarchy from Bob Perry is that PSC has received new funding and will put his new 38 into production. That's good news for a company with a terrific history and some terrific boats.
__________________
SailorMitch
Sailing winged keels since 1989. 1.20.09 Bush's last day the end of an error !! Hopefully we still have a constitution and economy left by then.
"Compassion and tolerance are not a sign of weakness, but a sign of strength." The Dalai Lama
good planets are hard to find-- a song by steve forbert
I have but one lamp by which my feet are guided, and that is the lamp of experience. I know no way of judging the future but by the past.-- Patrick Henry.
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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Rick I
Toronto in summer, further south in winter.
While I don't know the answer to will they survive I do know the person who will be making the Dana. He had purchased the molds and I believe he will be building them up in the Pacific Northwest; Seattle or thereabouts.
Antique Sailor
In a fairly bizarre twist, the PSC website is back up! No news on it, or anything, but a red message tha tsays "Brody, click the Contact US" link, where a personal message to "Brody" has been posted, by one of the company's old staff, who apparently is trying to sell his services to the new ownership?
Hello Brodie, My name is Elias Schwartz
I have worked for Pacific SeaCraft through 3 administrations in various capacities.
In the first administration was as the Chief Electrical engineer on the 38T and all the sail boats as well as an adviser on the Norhaven 40.
In the second administration I was as the webmaster and email manager.
During the 3rd administration the web site was taken down by the owner and replaced with links to his other manufacturing facility, leaving me with hosting duties only.
Now that past administration has gone, I have launched the old web pages for you as I know you are busy with the relocation of your manufacturing facility. I'm currently hosting the emails and the web pages you see and have created an address for you. Please contact me at your convenience so I can give you your password (not here for obvious reasons).
brodie[at]pacificseacraft.net and brodie[at]pacificseacraft.com both currently responds with:
Brodie has not activated his email yet, please be patient.
I will forward this mail when he does.
Webmaster
I hope this is satisfactory.
Sincerely,
Gritz[at]pacificseacraft.net
All I can ask is: does this mean that company is well and simply relocating to the Carolinas? - or wherever "Brody" lives?
That would be good news, obviously and we should somehow show "Brody" our support..
__________________
Niko, SARANDIS, 54380 (My Sun 27)
The company had an interesting presence at the boat show. They had brochures and everything, almost as if nothing had happened. In fact, I am sure the average visitor had no idea there had been any major changes in the past few months. Understandably, that wasn't what they wanted to talk about.
That's the way everything works in a bankruptcy liquidation, of course, but I couldn't help but think that it was a little strange. I asked, of course how they had evolved - couldn't resist. I guess it was the new owner's wife.
She said they had "bought the company" from the prior owner and were moving the production to Washington North Carolina immediately. He had been a a marine archaeologist and had always wanted to go into the business. They didn't mention bankruptcy or address the idea that the buyers of the "boats in progress" probably had lost a lot of money. They were only talking about the company and it's history of quality.
In any event, they were there with boats and banners and brochures...I don't know if they got any orders for new boats, but they were there. I knew the molds and equipment had been bought, but the idea that the brand was presented 3 weeks (or so?) after the auction seemed odd - no judgment call, just an observation and glad I wasn't one that bought and paid for one of the boats a few months before the failure.
__________________ The next best thing
To playing and winning is playing and losing.
Robert Lee Castleman
Last edited by Pamlicotraveler : 10-08-2007 at 09:01 AM.
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