Shipyard files Chapter 11, but Derecktor Maintains its Course to Grow
Derecktor Shipyards Conn., LLC last month filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The company said the filing was the result of a single contract dispute, and that it is still busy and fully staffed, working on several newbuild projects, including a contract to build a massive 85.6-m motor yacht, a 45-m catamaran and a pair of tugboats for Boston Towing and Transport. In addition, the Derecktor yard in Connecticut has a building slot open starting September 2008, as well as a build slot available for delivery at the end of 2011/beginning of 2012. "The company has been engaged in lengthy negotiations to resolve issues relating to one of its contracts," said Paul Derecktor, president.
Derecktor Shipyards Conn., LLC Announces Chapter 11 Filing
On July 18, 2008, Derecktor Shipyards Conn., LLC announced that the company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The company said that it intends to maintain all normal business operations throughout the bankruptcy process. Its decision to file bankruptcy was a result of several factors, most notably issues relating to a contractual dispute. “The company has been engaged in lengthy negotiations to resolve issues relating to one of its contracts,” said Paul Derecktor, president of the company. Mr. Derecktor continued, “The action we have taken is a necessary step to preserve the company’s value for its creditors, customers, employees and other stakeholders as we work towards the future success of the company.
Maritime Administration Awards $9.8m in Shipyard Grants
The U.S. Department of Transportation’s Maritime Administration announced $9.8m in grants to 19 small shipyards in the . The grants are part of the new Assistance to Small Shipyards program, set up under the National Defense Authorization Act for Fiscal Year 2006. “Small shipyards are vitally important for the health of the maritime industry, and for the economy of the Nation,” said Maritime Administrator Sean T. Connaughton. The purpose of the grants is to make capital and infrastructure improvements that facilitate the efficiency, cost-effectiveness and quality of domestic ship construction, conversion or repair for commercial and federal government use. The grants cover a maximum of 75-percent of the estimated cost of improvements. The companies are responsible for the remainder.
