January 24, 2012
Derecktor Shipyards Conn. LLC, based in Bridgeport, Conn., has filed for protection under Chapter 11 bankruptcy laws, under which companies can reorganize and re-emerge.
Robert E. Derecktor Inc. in Mamaroneck, New York, and Derecktor of Florida in Dania Beach are unaffected by the filing, the company said in a statement.
“A 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,” according to the statement. “The shipyard is seeking strategic alternatives, including an investor or buyer of the yard.”
The Bridgeport yard closed in October, a year after it launched the 281-foot (85m) M/Y Cakewalk V, the largest private yacht built in the United States since 1930. When it closed, it indicated it planned to reorganize.
Part of its financial troubles stem from a $12 million lawsuit filed by the owners of Cakewalk.
Filing under Chapter 11 is different from filing under Chapter 7, when a company's assets are dissolved and companies usually go out of business. Chapter 11 protects a company from the threat of creditor lawsuits while it reorganizes its finances.
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