July 22, 2008
Derecktor Shipyards Connecticut files for Chapter 11
Derecktor Shipyards Connecticut has filed for Chapter 11 bankruptcy protection, but said Monday the reorganization is not expected to idle the 250 workers at the Bridgeport yard, according to a report in The Connecticut Post.
The report says that Derecktor filed a bankruptcy petition in U.S. Superior Court in Bridgeport Friday. It quotes Bridgeport Mayor Bill Finch as saying Derecktor executives have assured him the filing "is merely a legal proceeding meant to help the boat maker work out a contract dispute with a customer."
"We don't think this Chapter 11 will have any impact on the company at all," Finch said. He said the city will continue to support Derecktor's expansion, which could add 100 more jobs at the shipyard.
The Connecticut Post report says the bankruptcy filing was only for the company's Bridgeport operation, and Derecktor petitioned the court to allow it to continue paying its 250 workers. Derecktor has operations in New York and Florida.
"The company has been engaged in lengthy negotiations to resolve issues relating to one of its contracts," Paul Derecktor, the company president, said in a news release quoted by the Post. "Unfortunately, the resolution of those issues were made impossible to achieve outside of the bankruptcy process."
Derecktor would not comment to the newspaper about which contract it was having disputes over.
However, a search of court filings shows that Gemini II Ltd., represented by Holland & Knight LLP, filed suit on July 14 against Derecktor Shipyards Connecticut in U.S. District Court for the Southern District of New York alleging breach of contract in relation to the construction of a 145 ft sailing catamaran.