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.
Comments