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Genmar creditors asked to return payments

BoatingIndustry
June 9, 2011
Filed under News

MINNEAPOLIS – The bankruptcy trustee for Genmar Holdings Inc. has moved to collect a number of payments paid to Genmar’s creditors within 90 days of the company’s June 2009 bankruptcy, which is against federal bankruptcy law, according to Matthew Millis, who represents Trustee Charles Reis.

Millis said notices were sent out to any creditor that had received a preferential transfer, or a payment during the 90-days prior to Genmar’s filing, to recover the amount they had already received.

Preferential transfers do not necessarily mean wrongdoing on behalf of the debtor or creditors, Mill said; the purpose is to ensure all of Genmar’s creditors are paid fairly by the trustee.

According to a U.S. Bankruptcy Court notice of settlement, Help Systems, McDaniel Yacht Basin and Strongwell were asked to return more than $25,000 in payments that the companies received within the 90-day preference period. A number of other companies also received similar notices, according to Millis.

Ries said the situation is ongoing, and they are still looking into more possible preferential transfers.

Genmar filed for Chapter 11 bankruptcy during a difficult period for the industry when the company didn’t have “the necessary time to complete any alternative financing acceptable to the banks,” Chairman and CEO Irwin Jacobs stated in a release shortly after the filing.

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