The day many people called and have been waiting for.
After all he has done for his fellow man.
This might be a blessing in disguise for him? He can now focus more attention on his investigation of who caused his company to be in the predicament that it is in.
The investigation should be quick. Only requiring a mirror.
This is long overdue.
The next thing the management needs to do is change the name of the company.
I don’t agree with this. If the new shareholders, owners & management decide to change the name of this very old company due to the screw up’s of the current generation so be it, none of my business. But I like nostalgia & honoring those long dead. The company had a good start & a long successful run providing good service, carrers & good wages for countless mariners for over a century. I hope they keep the name to honor its founder.
If they can bring back the customers and the cooperation of the USCG and ABS and the insurance carriers, without changing the name, then I agree keep the name.
Many Chapter 11 bankruptcies eventually end up in Chapter 7 (liquidation). If they have talented management and lots DIP financing, maybe they can avoid that.
Perhaps the new management will just sell the entire company.
I’m sure the investors already have a list of certain vessels already on the chopping block. Kirby and the rest are probably counting the money in their cookie jars
Certain more than a few pieces of equipment will be sold/auctioned and therefore be under a different banner. I kinda agree keep the name for the newer streamlined and downsized Bouchard if that is even possible after the bloodshed. The crews for the most part did their job, management failed them.
I hope the liquor stores in Melville are all stocked up.
Someone is about to put the hammer down.
Isn’t this court order, to remove a CEO unusual?
This is not over til the fat lady sings… Morty is still the owner of the Company and his removal as CEO was done without prejudice meaning Morty can fight the decision.
This is a pretty big speed bump, but I do not believe it is the end… or a start to a new beginning… stay tuned.
I think this order is very unusual.
A chapter 11 case is suppose to give the “debtor in possession” of the creditors’ collateral breathing room to reorganize and get the company back on its feet.
Chapter 11 allows the bankrupt company to: obtain new loans (dip financing) that has priority over all the existing debt; it is also possible for the company to obtain a “cram down” order, reducing the amount interest and principal that must be repaid on the original debt, as well as extend the repayment terms.
Chapter 11 requires that the debtor come up with a feasible plan to return the company to solvency.
The judge has apparently been convinced that Morty is not up to the task.
We saw a court remove Harley from the management of Harley in a fraud case. The company ended up in the hands of the lender and it was renamed Centerline . A different type of recent case where the court removed the owner from management with an unusual order.
When we talk about a name change, Harley came immediately to mind. It didn’t take Centerline long to pop up.
I think they should rename it the “Kinder Gentler Transport Company “
KGTC? Will that fit on the stack?
my questions are who BTC’s creditors are? Banks holding mortgages on the equipment or private capital holding notes signed by Morty? If it is the former, I certainly believe the banks would be very happy to see the equipment get sold to any competitor with a market and may well continue to carry paper on the assets once sold. On the latter case, private equity would want BTC to carry on and get their market share back. More in it for them that way.
All I care about however it that as of the judge’s order, Morty and his filthy spawn end up flat broke with no stake in the operation left at all. One hundred years and three generations of family ownership flushed right down the old shit shute by being a cheap asshole who found he didn’t have a friend in the world to pull his ass out of the fire he set himself! As they say, what goes around comes around…in spades even!