Power Catamaran World

PMY sea trials Africat 420

. . . easy maintenance is important, whether a boat is owner-operated or chartered, which I suspect many Africats will be. Either way, the 420's enormous saloon, superb ventilation, easy maneuverability, and shallow draft give her all the makings of a great Caribbean cruising powerboat—and that's a plus even if you never leave the States.

That's how Associate Editor Grant Rafter of Power & Motoryacht sums up the Africat 420 sea trial in the January 2008 edition of the magazine.

Africat is built in South Africa specifically for the U.S. market.

Power trimaran in Chilean Channels

Scott and Mary Flanders, friends of ours cruising the Chilean Channels at the bottom of the world, encountered a 90-foot power trimaran a few days ago. Ocean Alchemist is owned by sailing legend Olivier de Kersauson. Carrying a French film crew, he was on a fast trip from Brest in France to Brazil and Cape Horn, then taking the southern sailboat route on to New Zealand by April or so. De Kersauson said he averages 14 knots at sea taking it easy, 18 knots in a hurry and 22 knots flat out. Ocean Alchemist has small amas near midships, weighs 13 tons dry and carries 9 tons of fuel. 

The Flanderses invited de Kersauson aboard Egret, their Nordhavn 46,  for cocktails and had an interesting few hours listening to his sea stories.

De Kersauson told them he eventually plans to sell Ocean Alchemist and build a smaller version, in the 60- to 70-foot range, that he can cruise without crew.

Buon Natale di Lago Maggiore, Italia!

Season's greetings from Paul Hotz aboard PH8 in Italy.

Merry Christmas from Motorcat!

Season's greetings from Motorcat.

Merry Christmas from PDQ 34 Sno' Dog!

Christmas greetings from Henry and Nancy Clews in New Hampshire.

Merry Christmas from NDI Boats!

Greetings from Nichols Diversified Industries which is featuring a Grahame Shannon design in its Christmas card.

Insuring boat buyers against calamity

Aventure Power Catamarans provides insurance coverage to protect the deposits and payments of buyers in the event of financial collapse, fire or theft, or acts of God.

Aventure, which is based in Monaco with boats built in South Africa, offered the insurance plan before the recent insolvency at PDQ Yachts.

Tim Jordaan, Aventure’s managing director, explains:

In the case of most boatbuilding contracts, the client signs a builder’s contract and a payment schedule. The boat does not leave the yard until the client has paid in full and, in fact, the boat still belongs to the shipyard in those conditions.

We insure and register our clients boat in his or her name from Day 1. They are the owners of the boat and equipment through the different stages until completion day.

This method was mainly put in place in the event of a natural disaster, which, in the case of boatbuilding companies, usually is a fire. In the event of liquidation, the owner can remove his boat as it is in his name solely, and insured as such.

The insurance company would be the first in line as the major creditor and usually the assets of the company could cover any payout, that is, of course, if the moulds and tooling have not been hived away.

The insurance is costly but well worth it to protect our reputation.

Power Catamaran World will be pleased to list any other powercat boatbuilders who offer similar insurance protection to buyers.

PDQ unsecured creditors out of luck

Andy Fisher, the court-appointed trustee overseeing the auction of PDQ assets, has indicated there is only one secured creditor--albeit a major one. "The secured creditor is owed somewhere between $800,000 and $2,000,000," Fisher said, noting that the $130,000 in proceeds from the auction would not be enough to pay down the debt.

Anyone with an unsecured claim, such as a $10,000 deposit, is out of luck. As Fisher noted, "You could pursue the company, however, because the company does not have any assets, and/or does not have any assets available for the unsecured creditors, you would likely be wasting your time and money."

No word yet as to the identity of the secured creditor--It could be the Town of Whitby which leased factory space to PDQ--or the business or individual who owns the tooling and molds for PDQ catamarans.

The image is the final production schedule p[osted in the fibreglass shop before the company closed its doors.

PDQ in receivership

Andy Fisher, the court-appointed trustee overseeing the auction of PDQ assets, told Power Catamaran World that PDQ Yachts is not bankrupt, rather it is in receivership. Fisher is a chartered insolvency and restructuring professional (CIRP) who owns Lawson Fisher which bills itself as Trustee in Bankruptcy on its home page.

Fisher said the proceeds of the auction would be shared by the company's creditors. He said the list of creditors is not public information.

We asked Fisher about the tooling and molds for the PDQ 34 and 41 and a PDQ sailboat model. He said the molds are being dealt with separately, that it's another issue not handled by him.

We have been unable to substantiate rumors that a company other than PDQ Yachts has ownership of the tooling and molds.

In an earlier post, we reported that one PDQ customer was pleased that the company refunded his deposit on a PDQ 34. Not everyone was as fortunate:

          "I also had ordered a PDQ and my hull was number 116. I received a portion of my deposit back but not the entire amount. I was told by a PDQ lawyer that it's too bad but I've lost the balance of my deposit. That amount is a five figure total and my hull is sitting in the factory waiting to be completed. I was shocked beyond belief that I was not informed earlier that there were possible problems with the production of the boat in regards to not being able to produce because of financial constraints. I had already gotten hit with a $20,00.00 increase in the selling price but never was I told there could be problems. It's another sad story of the boat manufacturing business."

Another customer told us:

"I sent PDQ a check for $10,000.00 earlier this year to hold the price of a PDQ 34 or 41 through January 2008. PDQ has not returned my e-mails and not responded to a letter I sent them last month. I phoned them and was told that [xxx] would get back to me "next week" but that has not happened."

What exactly does "receivership" mean? Investment Canada, a federal government agency, says:

A business has not gone defunct by reason only that its assets have been placed in the hands of a Trustee in Bankruptcy pursuant to the Bankruptcy Act, or that its assets have been placed in receivership. Provided the Trustee or Receiver is carrying on the operations with a view to disposing of the business as a going concern, or to reorganizing its affairs, it is still considered a "business". However, where circumstances have degenerated to the extent that the business is incapable of being carried on or of being sold as a going concern, and the Trustee or Receiver takes steps to liquidate the assets on a piecemeal basis, it is no longer considered to be a "business" as defined in the Act.

Bankrupt or in receivership, PDQ Yachts, sadly, is out of business.

Click here if you want to read a backgrounder on business bankruptcy in Canada and how it differs from Chapter 11 in the United States.

 

PDQ assets auctioned

The assets of insolvent PDQ Yachts, builders of the striking new PDQ 41 (left) and the popular PDQ 34 (below), will be auctioned tomorrow at its manufacturing plant in Whitby, Ontario, where the company began business 20 years ago.

But a PDQ dealer is holding out hope that the brand--the most popular cruising catamaran in North America--will eventually continue, albeit not in its original structure or location.

Here's what's being sold at the auction: manufacturing equipment, including cranes, forklifts, vehicles, routers, planers, joiners et al, office equipment, parts and components such as compasses, lights, seats, air conditioners, inverters and one catamaran hull, model unspecified.

Click here for the 47-page catalog in PDF.

Click here for details about the auction being conducted by Danbury Sales.

Here's how one PDQ dealer explained the business failure to customers:

". . . we were notified by PDQ management that they were "closing their doors" until a buyout by new investors can be finalized.

In spite of the PDQ's popularity and success in the market, it appears that a number of factors have all combined at the same time to force PDQ into this action.

PDQ's profitability has been eroding rapidly due to the significant increases in material costs, the historic devaluation of the US dollar (vs the Canadian dollar) and the recent slowdown in the entire recreational boating market has effectively dried up new orders. As you know, pricing on the new PDQ's has escalated in the last twelve months, but has not kept up with their costs and has left them with insufficient cash to continue operating.

This is obviously a very sad day for [us], but more so for the outstanding PDQ employees with which we have had the opportunity to work. For those of you who have had contact with the PDQ staff, I think you will agree that we could not find a more professional or dedicated group of people in the industry! The PDQ team developed an outstanding product and they were very proud to deliver and support it.

The good news is that [xx] is leading a buyout of the company by a group of private investors. It will take some time for the details of this buyout to be completed, but [we are] optimistic that PDQ will be back in operation, with adequate capital to continue producing the PDQ product line."

A PDQ customer who had ordered a PDQ 34 and paid a deposit reported on Power Catamaran List:

"I had committed for #115 of the PDQ 34 power cats. It is sitting in the plant partially completed and they have stopped their production. They have refunded my money as they did not want it to become tied up in their financial difficulties. I am extremely disappointed but very much appreciate their respect for my financial integrity."

If you have any other information to share on the demise and possible resurrection of PDQ, please use the comment function below or send the Editor a private message.

The PDQ site is still up on the Web--without any mention of the financial sinking.