Challenger Powerboats files Chapter 7 Bankruptcy
By IBI Magazine
Challenger Powerboats, and its two subsidiaries, IMAR and Marine Holdings Inc., all filed for Chapter 7 Bankruptcy on April 25, according to filings with the Securities and Exchange Commission (SEC). The Washington, Missouri-based boat manufacturer built Challenger Powerboats, Sugar Sand Jet Boats and Gekko Skiboats. Challenger said in the filing that its assets will be "insufficient to satisfy the claims of all creditors and it is unlikely that the Company's shareholders will be eligible to participate in any distributions of the Company's assets as a result of the Bankruptcy." It said that it would cease all business activity and operations. Challenger, which struggled to make a profit since turning away from commercial boats to the recreational boat market three years ago, was also beset by lawsuits from former executives and financial backers. The company laid off 58 of its 85 employees in March. The bankruptcy filing came a day after Michael Novielli and Douglas Leighton, the company's majority shareholders through their investment firm Dutchess Capital Management LLC of Boston, resigned as the only two remaining board members. Calls to Challenger's headquarters in Washington, Missouri, were not returned.
(6 May 2008)
|
