Derecktor’s Connecticut yard files for bankruptcy protection
Derecktor Shipyards Connecticut, LLC, based in Bridgeport, Connecticut, USA, confirmed that it filed for Chapter 11 bankruptcy protection on 20 January. The company's Mamaroneck, New York, and Dania, Florida, yards are unaffected by the filing in Connecticut, according to James Brewer, director of sales and marketing for the company.
'No captain or owner should have reservations about using either New York or Florida now or in the future,' he said.
According to the document filed in the federal bankruptcy court, the Connecticut yard has more than 200 creditors, including the Bridgeport Port Authority, which owns the property.
'The Bridgeport Port Authority is talking tough but I think that they would prefer to see Derecktor weather this storm and stay on the site,' said James Brewer. 'The Connecticut yard has been a good tenant for over 10 years and the relationship has been excellent for much of that time. The yard needs new construction to be really viable and we have had a difficult time securing either a yacht or commercial contract due to the current economic situation. The major equipment, like the Travelift and the dry-dock, remain on-site.'
The Bridgeport yard had closed 5 October 2011 in what it said was a temporary action, due to lack of projects in the yard, which had concentrated on new construction. Its last projects were the 85.6 metre Cakewalk delivered in 2010 and a 39 metre offshore supply tug delivered in 2009. The 44.2 metre sailing catamaran Hemisphere was started at the yard but finished at Pendennis in the UK.
Derecktor Shipyards Connecticut, LLC had filed for bankruptcy protection in 2008 following the departure of the Hemisphere project but received a loan from the owner of Cakewalk to remain solvent and finish the project. It emerged from bankruptcy protection just four months ago.
Cakewalk V Ltd, filed a $12 million breach of contract suit against the yard on 23 November 2011.
Robert E. Derecktor, Inc., the name of the yard in Mamaroneck, New York, has approximately 40 boats in its winter storage facility and has several yacht and commercial refit projects underway.
Brewer says that yacht repair and refit revenues at the Florida yards in 2011 were up almost 30 per cent from 2010 and that this facility is investing in upgrades to the property this year.
According to Brewer, the depressed economy, the cash drain of investment made in building out the Bridgeport facility and a recent lack of new construction opportunities have put a tremendous strain on the company’s finances. The shipyard is seeking strategic alternatives, including an investor or buyer of the yard.
For more information contact:
*James Brewer, director of sales and marketing *