No big surprise here…as most would probably agree without a change in leadership this will be another band aide and not a cure.
That is no surprise, I wonder what took them so long. I hope he can keep operating as the article states. Too many jobs at stake here. Not my favorite guy, but he has the boats/barges that are important to the Jones Act fleet. Wonder if he sold his plane yet.
Still on the market. Price is not listed on this site but it’s been reduced by $10M down to $39M.
Off subject but see you guys are doing ok regarding covid. My guy on the SeaDucer says bookings are off the chart.
They say it’s a bitch having to give up a private jet.
Wish I had one to sell.
N440MB was manufactured in 2017 and delivered to BTC in 2018. It went back on the market a few months ago. Total time on the airframe is 778 hours.
BTC didn’t put all of those hours on the clock. Gulfstream had test flights prior to delivery to work out any bugs and I would throw in a demo flight or two.
To be fair, let’s say BTC’s use was 750 hours. At an operating cost of $4000/hr, it adds up to $3M.
Assuming BTC paid the going $39M price tag on its fresh out of the box G650 in 2018 you have to recognize that they have competition in the sellers’ market. MB may have to drop his asking price a few more millions to snag a buyer if serious about selling. Let’s say BTC accepts an offer of $35M for a quick sale, the total cost of owning the aircraft including the already spent operating costs of $3M will have set back BTC about $4M per year in the last two years.
How much would it have cost to do the required maintenance on that barge where his employees were burned alive?
Out of sight, out of mind…
Here is the second filing. Probably the most in-depth picture of BTC finances and regulatory hurdles.
That was a long read, but paints a grim picture. No wonder none of the lending facilities were interested, except the group that has the plane as collateral for $25 million. Chapter 11 is about all he can do at this point to save his fleet.
Amazing how corporate bankruptcy protects corporations, allows them to write off money owed to banks and the banks have to eat the loss. They keep flying in the corporate plane while things get sorted out too.
Declare personal bankruptcy due to medical bills or loss of a job and in many states you’ll lose your house and still owe the credit card companies, student loans etc.
We should all be corporations. A corporation is a piece of paper that has more rights and protections than a walking talking citizen.
Agreed when you run your revolving credit instrument up to 150% And hawk the plane with little to no revenue coming thru the door for 3-4 quarters; Lose trust from most customers; stop paying critical vendors; do not lay up Idle boats and lay off crews and become increasingly belligerent to ABS, USCG and DNV-GL … it’s hard to see a way forward except bankruptcy protection.
But the DIP financing is only a small part of the puzzle and the biggest missing piece from the filing was the lack of management information? Who will put humpty dumpty back together? A corporate restructuring specialist from Chicago, a 3rd party HSE consulting firm and Mr. Bouchard?
What class society will they bring in that has a bigger footprint in the US than DNV-GL? Considering ABS is off the table?
And a critical part of the plan is how long will it take to get BTC units vetted and accepted by customer base?
Still a lot of questions over and above access to more dollars?
Hope the restructuring people asked for their money up front on a pay as you go litigation. The whole process won’t be cheap and hard to calculate. How long this will drag out is anybody’s guess. Not sorry for Morty but the employees. Those boats will be running again, but how many under Morty’s flag?
It will be impossible to resume “Normal Operations” without a DOC for the office and associated SMCs for the tugs and barges…………and ABS and DNV will not do business with him…
The report is not worth the paper it is printed on. It did not confuse even the brightest fellows to see this coming. I am sure his pop is proud of little Morty. Sounds like bankers are treating him as he treated his employees. Turnabout is fair play sometimes. Would like to see those boats working again, some damn nice equipment rusting away. Paint it a different color and put some good mariners back to work.
Well it looks like BTC has joined AWO and has a provisional RCP certificate… ? Not sure who is issuing Load Lines, Class certificates, SMCs and DOC?
Even if a classification society is dumb enough to take on Bouchard, what customers will still do business with him? As has been posted here Shell and Valero won’t do business with him any longer.
I see the boats stacked every time I sail past Caddell’s, it’s a shame that he won’t at least charter a few out.