The huge builder of cruising power and sailboats, Bavaria Yachts, received a ruling from the German courts that is could declare bankruptcy and enter into a three month period of “self-administration” while it tries to recapitalize the company. The U.S.based investors who own the company, the venture capital firms Anchorage and Oaktree, forced the CEO out and have refused to add more cash to their investment. This has caused a cash crisis.
In the interim, boats that have been bought and paid for were held in the factory by the German courts until a resolution was agreed upon, which has created some turmoil in the Bavaria dealer network. The company has been given three months to reorganize and will build and deliver boats that are on order during that period. There was no immediate announcement of what will happen to the employees, dealers, warranties and customers after that three month period.
Bavaria recently bough the catamaran builder Nautitech, based in France, but this remains an independent company and is not affected by the bankruptcy.
Read the full report in Yacht magazine here. It’s in German but you can translate it with a right mouse click.
Read Bavaria Yachts’ official announcement here.