Graczyk bought the company last year from Steven King, who is listed among the company's largest creditors with a $1.2 million unsecured claim that is disputed, according to the creditor matrix. The largest creditor listed is Pathward, National Association, with a pair of unsecured claims totaling nearly $2 million.
"Not until after the purchase of the debtor did Mr. Graczyk discover numerous financial improprieties, breaches of warranties and general mismanagement that had befallen the debtor under previous ownership," according to the declaration.
Charles Bullock, attorney at Southfield, Mich.-based Stevenson & Bullock PLC representing the company in the case, did not respond to a request for comment.
Running Tide LLC, a company domiciled in Maryland, filed a breach of contract lawsuit against Offshore Spars last year, according to court records.
Offshore Spars is seeking the court's permission to continue operating while a restructuring deal is worked out.
"Though Mr. Graczyk spent considerable time and effort prior the petition date attempting to remedy such matters, a reorganization of the business through a Subchapter V bankruptcy became necessary," the filing said.