Palmer Johnson bankruptcy ends

STURGEON BAY, Wis. — A story in Friday’s Green Bay Press Gazette said that British investor Timur Mohamed will be the new owner of yachtmaker Palmer Johnson Inc., following a court hearing last Thursday that finalizes the company’s 11-month Chapter 11 bankruptcy.

The story said the bankruptcy settlement leaves Palmer Johnson’s branches under one umbrella again, including Palmer Johnson Savannah, and that many local companies will get some money that was owed to them. It goes on to say that about 154 employees in Sturgeon Bay, Wisc., are “virtually assured of a job for now.”

Mike Kelsey Jr., will be Mohamed’s president of the new Palmer Johnson companies according to the story. He told the newspaper that the Sturgeon Bay boatyard will begin construction on a new yacht immediately — a replica of the aluminum sport-luxury yacht launched for Mohamed in Sturgeon Bay last year.

The Press Gazette said judge James Shapiro, U.S. Bankruptcy Court of Eastern Wisconsin, confirmed Mohamed’s plan in a confirmation hearing Thursday morning in Milwaukee. Mohamed’s contract to assume ownership takes effect with a closing date of Feb. 23.

The story said that of the company’s 156 unsecured creditors — people to whom Palmer Johnson owes money — only four voted against the final plan, according to Milwaukee attorney John Wirth.

Palmer Johnson is currently owned by dot-comer Andrew McKelvey, president of TMP Worldwide, of which is a subsidiary, according to the article.

The story said Mohamed’s plan offers these guarantees for the future of the company:

o Palmer Johnson Inc. stays in Sturgeon Bay with at least 100 employees for at least two years and three months, or employees assume ownership of the company name and logo.

o Mohamed pays at least $850,000 to unsecured creditors, who are owed more than $5 million. The amount may only cover about 16 to 20 cents on the dollar for that class of creditors.

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