[MHml] Paying Off Creditors

[Captnlen]

Back when we shut down Lenman Industries in Cape Coral during the oil 
crunch of the 70's when resin went from 125 to 500 for a 55 gallon drum, 
we had orders for over 12 , Trikini 6.47 swing wings.

We had a delay retooling from Jet to prop inboard and beefing up swing 
wing systems and by the time
we were producing material costs exceeded the pre production purchase price.

We delivered 6 boats at a loss and refunded deposits for the other 6. We 
repriced and attempted to market but the price increase was not 
acceptable.  Even with a patent we chopped the molds and closed the 
production boat operation.

With oil prices and increasing material costs and taking orders for 
boats with long lead times you eventually run out of profit or even 
breaking even.

Its a fact of the economy today.

brian eiland wrote:

> 
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> Re. PDQ Auction.Evan Gatehouse wrote:   
>  
>
>>I doubt that any operation closing will do a good job of paying off   
>>all their creditors - that's what bankruptcy is isn't it?   
>>  
>>Blaming high overheads for a boatbuilder going out of operation   
>>seems really unlikely. Do you have figures from the accounting   
>>dept of PDQ, or just the whinging from a bunch of unpaid suppliers?   
>>    
>>
>   
>Tony Hammer replies:   
>Actually that's not entirely true. Countaris Yachts (Dragonfly in   
>Canada) wound down without leaving anyone with a soaking.   
>My source wasn't left being owed anything. He had insisted on   
>certified cheques for some time, despite being pestered to deliver.   
>He had the figures for rent and utilities of PDQ's VERY large   
>facility. Didn't add up to solvency in any environment, let alone   
>this one.   
>   
>Before Abbott boats (Olympic Finns, Solings, Wayfarers and some   
>offshore boats, 22-36 feet) were put out of business by the fire,   
>Bill, the founder, told me he had to compete at that time with   
>resurrected boat builders who had a big advantage over him after   
>going bankrupt (a lot of very discounted gear, debts wiped out etc).   
>He thought it unfair competition. I wonder what Tony Smith at Gemini   
>and the guys at Maine Catamaran have to say.   
>   
>I admire the Slaters for what they have done.   
>   
>Tony.
>__________________________________________________
>Brian replied:
>I disolved my Firefly trimaran project without oweing any of my marine
>creditors, and we finished our remaining vessel in works, and delivered it. I
>also paid all remaining desposits off. We built 6-7 boats if I remember
>correctly
>
>However my American Express & Visa Card were none to appreciative. That
>haunted me for a few years.
>
>Brian Eiland
>Chesapeake Catamaran Inc(the original one)
>RunningTideYachts.com   
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-- 
Live Long and Prosper
Capt. Len Susman, retired
trikini23 at trikini.com 
After Dec. 13,2007
Email : trikini2007 at comcast.net                    
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