Will Pacific Seacraft Survice Bankruptcy?

[niko]

Do you think they will successfully manage to reorganise?
Will they end up closing the doors?
Will they be bought out?

[blowinds]

I may have a different view on the chapter 11. My company filed in Washington in 2004, not because we were broke but because we would have been due to a lawsuit if we had not filed. We reorganized and we paid off all of our creditors 100%. We got the litigants to the table and were able to negotiate a settlement that did not take the company under. We are currently successfully operating a profitable company and continue to employ 15 people who depend on our company in order to make a living.
I happen to own a 1995 PSC 37 it is a boat I recently purchased that had a run in with hurricane Ernesto. I am currently in the rebuild process and have been speaking with Robin at the factory about a parts order. I noticed that Robin was helpful. He did seem to be very busy but like I say he is working with me to my satisfaction.
I think we need to all take a deep breath and see how everything shakes out. I know that when I filed everyone treated me as though I was a deadbeat and assumed I was done, finished , HISTORY!!!!!!!!!!!!
I am not going to tell you there is no problem and that a great percentage of chapter 11 filings succeed, cause they don't, but maybe we could all give them a chance to reorganize and see what happens.
The first hearing will tell what the status is and what they hope to do. If they were going to just quit they could have filed under chapter 7. they at least have a desire to try and make it so let's see what happens.

I hope for all involved that they make it

Mike
PSC37 Elizabeth

[Brezzin]

In your case, Chapter 11 was a defensive stratagy. The underlying business model was sound.

I don't think it a stretch to say that PS reason for filing is simply lack of new sales, a product that costs to much and old designs. All in all, a suspect business model. I voted that they will be bought and the new owners will retool the business model. There is to much value in the PS brand to just fold.

[blowinds]

I agree that there is value in the brand and the right new owner could likely figure out how to make it all work. I hope that is what happens.
Blowinds

[blowinds]

I spoke with Robin at Pacific Secarft yesterday and the reason for their chapter 11 was impending litigation that would have cost the company more money than they could have afforded. They plan on restructuring and moving forward. As mentioned before they have a loyal following and if everyone hangs in there I believe they can make it and continue to service the many sailboats that are out there and produce many more boats in the future.

[thooten]

Anyone know what the lawsuit was about?

[teejayevans]

Originally Posted by thooten

Anyone know what the lawsuit was about?

Lets see, they are located in California...I'll put my money on an
environmental issue.
Tom
Cielo Azul

[blowinds]

I heard that it was a former employee. I am not sure about why they sued but my guess would be that they felt they were fired for no reason or the wrong reason. Attorneys have been known to take these cases, file for a large sum trying to get a settlement from a well to do owner of the company. Legal costs of these lawsuits can be astronomical and would most likely break the company. The chapter 11 will encourage a negotiated settlement and hopefully allow the company to continue to operate.
I hope it works out for them.
Mike
PSC37 Elizabeth

[Brezzin]

Originally Posted by blowinds

I heard that it was a former employee. I am not sure about why they sued but my guess would be that they felt they were fired for no reason or the wrong reason. Attorneys have been known to take these cases, file for a large sum trying to get a settlement from a well to do owner of the company. Legal costs of these lawsuits can be astronomical and would most likely break the company. The chapter 11 will encourage a negotiated settlement and hopefully allow the company to continue to operate.
I hope it works out for them.
Mike
PSC37 Elizabeth

I don't buy that. Most of these types of cases are settled out of court for around a years salary or less. Plus most company carry insurance for these type of cases. Even if they did'nt it would not be enough to bankrupt the company, that's for sure.
Now if the company had not made payments on retirment plans or healthcare benefits for retires or screwed a contract buyout of a former employee, then it would make sense.

[richnren]

For some reason that I can't imagine, I received a set of the bankruptcy filings from PSC's lawyers. It lists a truly impressive set of creditors, for what that's worth.

However, it does not indicate amounts claimed.

Given the creditor list, I'd venture to say that protection from an employee lawsuit is not the reason for the filing.