Can't speak for the company obviously but I'm sure they won't do anything to turn away any of there customers. Seems like they maintain close ties with current OL owners.

I am sure that the OL team with Joe and Dan will do the right thing for their customers past and present.

Technically, the new company is not held to the debts, assets, warranties, etc. of the old company because they are only buying the equipment from the old company and not the old company itself. It is a new company and unless there are conditions or otherwise that go with the sale, there is no technical tie between the two companies. This will protect the new owner(s) from any outstanding claims, debt, etc. held from the old company. I have seen this first hand in my industry and also fell victim to a similar situation when I bought my Donzi, filed a suit against them, they sold off and I had a suit against a asset less company.

Tom A. Good info. I wonder if it also Helps with creating good relationships with vendors that may have lost some money in the past?

Sounds like a nice story and great for the employees but aren't there a few issues not being addressed?
i) With the sale being managed through the courts people will lose real money like in any bankruptcy. Look at teh billions
GM is making now and all the bankrupt families in their wake
ii) Why was there so much debt of this was one of the most successful boat builders?
iii) Probably explains why there have been so many fund raisers for the family, boat building is about passion not getting
rich
This comment on the article is interesting

Phoenix Rank 6975
Mark Russo in particular and both business court judges are the most corrupt in Rhode Island. They STEAL businesses from rightful owners for their own pockets!!! Rampant impropriety and fraud!!! They are racketeers and should be in prison.

Very happy to be told this positive news. Great company for our sport.

I can't even imagine how many politics are involved with this though, most we will never know the truth about.

All involved have done a very good job keeping this all secret, and maybe that's best, but obviously there curiosity.

Asset sale means the liabilities stay with the original owners, so the proceeds of the sale would have been used to pay down the debt, otherwise I would imagine the creditors would have never agreed to the sale. The old company still exists hence the reason to set up a new named co.

This is a different type of sale than an equity sale, where your shares of the company are sold, effectively transferring all assets and liabilities to the new owners.

I know nothing about OL's finances but all boat builders struggled after 2008 so that would be one cause for debt accumulation. OL also never really entered the "CC craze" and CC's saved many boat builders during those lean years.

Everyone looks at the price of boats and while it is staggering they forget the cost of the overhead and labor costs. Article mentions 30 employees, even if they only made $600 a week that payroll easily balloons to over a million dollars a year (with taxes, workers comp, etc)......just at the minimum of $600 a week, which many will make more. Lets fantasize that you make 100K per boat, you then need to make 10 boats every year just to cover the $600 a week payroll! :eek: Drop the figure to 50K a boat (net profit) and suddenly you need to make 20 boats a year just to cover payroll! :eek: :eek:

If anyone can make OL go.....Dan and Joe are those guys!

Prior to 2008 when things were good they probably lived good also if you get my drift

sorry bad link so I removed it

The boats are going to get faster also. According to the caption under one of the pics, Merc is also supplying them with 11,000 hp engines. Lol