Maryland marine service Point Lookout Marine Properties, Inc. filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Maryland on December 25, 2020.
Their filing cites 10 material suppliers and equipment lessors as creditors, with nearly $2 million in total liabilities owed.
Beyond providing marine shop services, Point Lookout Marine Properties also charters fishing vessels and operates a restaurant at their location in Ridge, Maryland — roughly 75 miles south of Washington D.C. along the Chesapeake Bay.
Point Lookout Marine Properties claims in their bankruptcy petition that they owe at least $1,993,421.56 to 17 reported creditors, with both secured and nonpriority unsecured claims.
The marine shop service was incorporated back in 1985, and according to the Maryland Department of Assessments & Taxation, the business is in good standing following their latest annual report filed in June of 2020.
At the time of their bankruptcy filing in December 2020, Point Lookout Marine Properties reported the value of their remaining assets were estimated to be between $1–$10 million.
What is Chapter 11 bankruptcy?
Under Chapter 11 bankruptcy, a debtor must file a plan of reorganization along with submitting their bankruptcy petition to the court. The plan itself must be in the best interest of the creditors. The creditors can also propose a plan of reorganization if the debtor fails to do so. After filing for Chapter 11 relief, a business can typically continue to operate while acting as a “debtor in possession.”
Creditors that obtain secured claims are typically paid first, followed by creditors with unsecured claims. Unsecured creditors may only recover from the debtor if there are any remaining funds available after settling the secured claims.
Point Lookout Marine Properties lists 2 secured claims, 15 unsecured claims
Point Lookout Marine Properties list two creditors with secured claims, totaling a combined $1,771,572.07.
Among the 10 suppliers and material lessors listed as creditors in the filings, only one — United Marine Services (d/b/a Ventnor Marine) — holds a secured claim. The claim is listed as a judgement lien valued at $1,111,572.07.
Cedar Point FCU holds the second secured claim, which is valued at $660,000 for a first mortgage.
Point Lookout Marine Properties also lists 15 nonpriority unsecured claims held by 13 different businesses, with a combined total of $221,849.49.
Of the 13 different businesses that hold nonpriority unsecured claims, nine are suppliers and equipment lessors. Riverside Marine Properties, LLC holds the largest nonpriority unsecured claim of the nine suppliers and lessors at $174,500. The basis of the claim is listed as “trade debt.”
The remaining eight supplier and equipment lessor creditors with nonpriority unsecured claims listed in Point Lookout Marine Properties’ bankruptcy filing include:
- Carroll Motor Fuels – $6,000
- Chesapeake Aluminum – $7,800
- Donovan Marine – $107.27
- Dyson Building Center – $100.99
- Fisher Auto Parts – $386.68
- Milt’s Sales & Service – $1,200
- Paxton Company – $0/unknown
- Waste Management – $856.97 and $324.17 (two separate claims)