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Friday, June 13, 2008 6:18:12 PM
Challenger Powerboats files for Chapter 7
St. Louis Business Journal - by Patrick L. Thimangu
Friday, May 2, 2008
Challenger Powerboats Inc., a Washington, Mo.-based company that has struggled to remain afloat over the last three years, has sunk into bankruptcy.
Challenger filed for Chapter 7 liquidation in U.S. Bankruptcy Court in St. Louis on April 25. The company, which manufactures sports boats and high-powered speedboats, took the step after failing to meet "growing monthly obligations," according to court filings.
Challenger's bankruptcy filing came a day after Michael Novielli and Douglas Leighton, the company's majority shareholders through their investment firm Dutchess Capital Management LLC of Boston, quit as its only two remaining board members. Challenger's stock is listed on the over-the-counter bulletin board.
Calls to Novielli's office in New York and Leighton's office in Boston were not returned. Laurie Phillips, chief executive and chief financial officer of Challenger, did not return messages left at the company's headquarters. David Sosne and Bonnie Clair, who are attorneys at Clayton-based Summers, Compton, Well & Hamburg PC, which is representing Challenger in the bankruptcy, also did not return calls.
Challenger's demise comes three years after its predecessor company, Xtreme Cos. Inc., got into the high-end sport boat business by acquiring a 100 percent stake in Marine Holdings Inc. from St. Louis-area residents Ronald and Gailynn DiBartolo in a deal worth $4.3 million. Marine Holdings was the original maker of the Challenger Offshore line of sports boats. Xtreme changed its name to Challenger Powerboats Inc. in November 2006.
Bankruptcy court filings state that an entity affiliated with Dutchess Capital invested about $20 million in Challenger between September 2003 and October 2007. In all, Dutchess entities control nearly 99 percent of Challenger's stock, according to the company's annual report, filed April 15 with the Securities and Exchange Commission.
Despite that investment, Challenger never turned a profit. The company reported a loss of more than $4.6 million last year, on revenue of about $7.4 million, compared to a loss of $9.1 million in 2006 on revenue of about $238,000. The company had assets totaling $6.4 million and liabilities of $11.3 million at the end of 2007.
http://stlouis.bizjournals.com/stlouis/stories/2008/05/05/story13.html
St. Louis Business Journal - by Patrick L. Thimangu
Friday, May 2, 2008
Challenger Powerboats Inc., a Washington, Mo.-based company that has struggled to remain afloat over the last three years, has sunk into bankruptcy.
Challenger filed for Chapter 7 liquidation in U.S. Bankruptcy Court in St. Louis on April 25. The company, which manufactures sports boats and high-powered speedboats, took the step after failing to meet "growing monthly obligations," according to court filings.
Challenger's bankruptcy filing came a day after Michael Novielli and Douglas Leighton, the company's majority shareholders through their investment firm Dutchess Capital Management LLC of Boston, quit as its only two remaining board members. Challenger's stock is listed on the over-the-counter bulletin board.
Calls to Novielli's office in New York and Leighton's office in Boston were not returned. Laurie Phillips, chief executive and chief financial officer of Challenger, did not return messages left at the company's headquarters. David Sosne and Bonnie Clair, who are attorneys at Clayton-based Summers, Compton, Well & Hamburg PC, which is representing Challenger in the bankruptcy, also did not return calls.
Challenger's demise comes three years after its predecessor company, Xtreme Cos. Inc., got into the high-end sport boat business by acquiring a 100 percent stake in Marine Holdings Inc. from St. Louis-area residents Ronald and Gailynn DiBartolo in a deal worth $4.3 million. Marine Holdings was the original maker of the Challenger Offshore line of sports boats. Xtreme changed its name to Challenger Powerboats Inc. in November 2006.
Bankruptcy court filings state that an entity affiliated with Dutchess Capital invested about $20 million in Challenger between September 2003 and October 2007. In all, Dutchess entities control nearly 99 percent of Challenger's stock, according to the company's annual report, filed April 15 with the Securities and Exchange Commission.
Despite that investment, Challenger never turned a profit. The company reported a loss of more than $4.6 million last year, on revenue of about $7.4 million, compared to a loss of $9.1 million in 2006 on revenue of about $238,000. The company had assets totaling $6.4 million and liabilities of $11.3 million at the end of 2007.
http://stlouis.bizjournals.com/stlouis/stories/2008/05/05/story13.html
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