Discussion in 'Christensen Yacht' started by Yacht News, Dec 24, 2009.
"D'Natalin IV" seen in Curacao...
Local paper mentions they are in talks with Westport to buy them out. Now that should be interesting!
Just don't believe everything a desperate company says in these moments. Often stories spread like that are actually "We contacted them to see if they were interested" and that's the extent of the talks. There are many who might be interested in some part at some price but that doesn't mean a sale of any sort is eminent. It's a very tangled web right now as the current owners are suing each other. Luken basically suing the company he owns 50% of, but two of the boats in build are ones he'd purchased supposedly below cost. Even the facility owned by another entity. Luken wanting a receiver appointed, Foggia claiming to be working on a sale and claiming Luken took advantage of the company and doesn't have clean hands. And read a bit of history and none is surprising. Might Chouest be attracted at some point by the shipyard? Sure. He has 8, why not make it 9.
Just look back at Luken Communications with Equity Media and RTN and the $47.4 Million lawsuit he lost in that case over "Fraudulent Transfer" which led to an immediate bankruptcy filing by Luken Communications.
You're talking a business that's been losing money so not much value from that standpoint. No "goodwill" in a failing company. Very few Christensen's sold recently. Boats sold to Ocean Alexander and to Luken. Facilities and employees have value, but getting any deal arranged will be difficult and isn't likely to happen outside the courts. Several lawsuits already filed too so there will be many creditors to jump in the fray and have to be satisfied.
This was undoubtedly the worst kind of business arrangement possible. One person owns 50%, the other owners have 50%. Stalemate. Then top that with the fact the individual owning 50% is the only source for funding so he can make deals that are to his benefit and not necessarily the company's.
I would be very shocked to see this resolved anytime soon. Think "Northern Marine" except in some ways this is even more complex. The similarity is boats on the premises in various stages of completion. Another is that those boats probably all sold below cost to build them. The price I saw for the 164' was $5 million less than Westport's 164' and they do not have Westport's efficiency. And of course every day this drags on, the value decreases. The best employees find other work elsewhere.
There is also the belief expressed by Foggia that Luken just wants his boats and then wants to grab the Christensen name and move to the facility he had planned in Tennessee.
What a tangled web we weave.
Only thing I'd had to any above news is Stellar, owed close to $1 million, has either filed or plans to place liens against the six boats under construction. Whether they'll hold up or not (which I doubt they will), just another thing tossed into the picture.
With each day that passes, the more the only people left caring about Christensen are those who have paid large sums of money for the six boats in progress, and two of those are by an owner of the company, two for OA, and the other two I don't know. So really OA and two boat owners.
Stellar did file according to the article. How the Board of CEO Foggia and Christensen allowed a 50% stake to Lukens is hard to figure. Money talks, and now money walks. But it sounds like Luken wants to get his boats finished and take Christensen to TN.
Interesting to see the pic of the unfinished hull being moved. Any idea where it went?
Luken once again has proven quite transparent. Wealthier partner forces company into insolvency, agrees to buy the assets at greatly reduced value, can finish his boat, then run to TN if he wants.
What has been presented to the courts under a letter of intent is for the assets to be sold to Luken for $5.5 million. This will allow him to finish his boat. He would get the contracts for hulls 36, 38 and 40.
More information on the situation with OA. They contracted to build A-201, A-202, A203. A201 was delivered in August 2012. All work was stopped in December 2013. A202 is 21% complete and A203 is 1% complete with only the mold which was supplied by OA. OA had advanced more than $6 million on those boats which was 46% of the contract price. This also confirms my suspicion that OA had, just as Luken had on his boats, gotten a deal likely far below true cost. This would say two 120' boats for $13 million. Desperate company once again doing desperate deal, then getting paid ahead and production stops. OA did get a ruling their hulls are not receivership property and they may move them.
Patterns repeat. This entire thing is very consistent with Luken and his other business involvements.
A link to the article being referenced http://www.columbian.com/news/2015/may/27/christensen-shipyards-henry-luken-sale-vancouver/
This reporter seems to have his finger on the pulse!
Should be interesting to see where this goes.
It's the Henry Luken Pattern. Vonore, here we come. Yes, he'll continue some building in Vancouver for now. but the goal has been and is getting them to Tennessee.
And notice this "contracts for the construction of several hulls to WIT Washington, a limited liability company overseen by Luken." See, the boats were and are being sold to another entity owned by Luken.
Patterns repeat. Luken Communications, now Luken in yacht building. When one sells half their company to someone with deep pockets, they should take some history lessons first. Had they done so, they would have anticipated two things. First the company ending up in Luken's ownership. Second, a move to Tennessee.
Actually this situation may be much milder as there at least to my knowledge is no lawsuit like the one that resulted in the $47.4 million dollar award against Luken Communications for "fraudulent transfer" prior to their bankruptcy or the other lawsuits that were against them in multiple states.
The boat building business is simple compared to communications and television.
It will be interesting to see if any of the OA builds continue.
Christensen Group being sued, plus Luken saying he's going to sue for $20 million of missing money that when he was half owner he never could get reports on.
Does anyone have an update on them? Christensen seems to be launching some new yachts lately but almost seems to be transitioning into a design company. Their latest launch was apparently built by Delta Yachts. I’m not sure if that’s a one off or the new direction of the company.
Only thing I know is that the litigation between Luken and Christensen and others is still going on. Appears even to the extent that one of them got a protective order in November. I haven't looked at the details of it.
I know their recent website is quite nice though.
Story going round is that Delta finished the Christensen boat due to the owner pulling it out of Christensen when things went wrong last time. I don't think Christensen had any involvement in the decision. Christensen appear to be still building albeit very slowly. There is likely another 50m under construction.
I'm seeing that they plan to move from Vancouver to Tennessee. Nestled in beautiful eastern Tennessee, Christensen's future shipyard located in Tellico Lake, Tennessee, will consist of 55-acres with 450,000 square feet of climate-controlled manufacturing space and will offer 13 large manufacturing and assembly bays. This much larger yard will allow the Christensen's portfolio to expand to include yachts up to 225-feet.
That was always Luken's plan, long before he ran the others out of the company. Also a pattern with previous companies he's gotten involved with.
Henry should be prepared to finance a minimum of two spec boats that are well received by the marketplace as I cant envision anyone willing to be a 40-60 million dollar guinea pig to test out his newfound workforce and facilities. This will be a make or break move for the Christensen brand.