STURGEON BAY, Wis. – Under a settlement approved by a Wisconsin judge, British investor Timur Mohamed now holds possession of the Palmer Johnson name and in exchange has committed to keeping the yacht building business in Sturgeon Bay with at least 100 employees for the next two years and three months, the Green Bay Press-Gazette reported in an article today.
The settlement will gather all the Palmer Johnson businesses under the direction of one owner, and allow Mohamed to continue with his plans to remove the Sturgeon Bay-based yachtmaker Palmer Johnson Inc. from bankruptcy, according to the newspaper.
Mike Kelsey Jr., president of Palmer Johnson Savannah, told the newspaper that Mohamed intends to build fiberglass yachts in Savannah and aluminum yachts in Sturgeon Bay.
Mohamed to drive bankruptcy process
Judge James Shapiro of the U.S. Bankruptcy Court of Eastern Wisconsin made the decision over possession of the Palmer Johnson name on Wednesday. The newspaper said that decision leaves Mohamed “in the driver’s seat for the remainder of the bankruptcy process” as two other potential investors have withdrawn their bids. Though Mohamed is the only potential owner, a hearing to confirm a reorganization plan is set for February 12, the newspaper reported.
In addition to keeping the business in Sturgeon Bay, Mohamed has committed to paying at least $850,000 toward the company’s more than $5 million in unsecured debt. This could translate into as little as about 16 to 20 cents on the dollar.
Though the courts have yet to decide which credits should be paid off first, the attorney representing creditors’ interests told the newspaper that the deal with Mohamed not only secures jobs in the area, it offers creditors the most for what they’re owed.