The owner of a Chesterfield Township, Mich.-based manufacturer of composite masts, booms and poles for sailboats has filed a petition for Chapter 11 bankruptcy protection in an attempt to right the ship shortly after taking it over.
Offshore Spars Co. is seeking protection under Subchapter V of the Chapter 11 code, an option many small local companies have utilized to save money and time reorganizing.
The company, whose principal is Eric Graczyk, has more than 200 creditors and up to $10 million in liabilities, according to its voluntary petition in U.S. Bankruptcy Court Eastern District of Michigan in Detroit.
The company was founded in 1976 and has 12 employees.
In addition to making composite and carbon-fiber components for the "global superyacht market," Offshore Spars replaces and services rigging for yachts and does carbon-fiber manufacturing for the automotive and aerospace industries.
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.
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