Opal Marine - Chichester

[Nick_H]

"Mr Kanthan said part of the problem was outside contractors - including engineers - being allowed on site to work on yachts.'They did not have our overheads and therefore were able to undercut us.' He also said business was impacted when other brokerage companies started to operate from the Premier Marina in West Sussex."

So basically the business failed because they weren't given a monopoly!

My sympathies go out to the employees and creditors of course.

 

[Steve Clayton]

Excellent, Steve....very much appreciated!! :encouragement:

PM sent

A side note: I went into Opal about 6 months ago. Friends in the Caribbean (who have a place in Spain) looking for an Amel 54-serious buyers and we know what price Amel's command!

Not a dickie bird from Opal - in fact I fed our friends Amel leads and they are looking at a couple of them right now

 

[AllanG]

PM sent

A side note: I went into Opal about 6 months ago. Friends in the Caribbean (who have a place in Spain) looking for an Amel 54-serious buyers and we know what price Amel's command!

Not a dickie bird from Opal - in fact I fed our friends Amel leads and they are looking at a couple of them right now

PM received......many thanks, Steve.

 

[jfm]

My sympathies go out to the ... creditors of course.

Possibly not all of them Nick. Companies House records that at the beginning of this month 2 mortgages were created over 2stock boats (beneteau Antares 6.80 and Barracuda 7) in favour of the parent company, which company is in turn owned by a settlement with Alan English's name attached. The mortgages apparently do not relate to new loans; they related to loans that had already been advanced. Shutting the door when you knew your horse was about to bolt, while in the process opening the door of everyone else's stables, you might say. I'm not saying they did anything illegal; rather I'm just suggesting you might want to be selective with your sympathies

 

[AllanG]

Possibly not all of them Nick. Companies House records that at the beginning of this month 2 mortgages were created over 2stock boats (beneteau Antares 6.80 and Barracuda 7) in favour of the parent company, which company is in turn owned by a settlement with Alan English's name attached. The mortgages apparently do not relate to new loans; they related to loans that had already been advanced. Shutting the door when you knew your horse was about to bolt, while in the process opening the door of everyone else's stables, you might say. I'm not saying they did anything illegal; rather I'm just suggesting you might want to be selective with your sympathies

Many thanks for this info, JFM, but do you know how this arrangement would effect the possible future sale of one of these boats now Opal has ceased trading?

Cheers, Allan

 

[Nick_H]

Possibly not all of them Nick. Companies House records that at the beginning of this month 2 mortgages were created over 2stock boats (beneteau Antares 6.80 and Barracuda 7) in favour of the parent company, which company is in turn owned by a settlement with Alan English's name attached. The mortgages apparently do not relate to new loans; they related to loans that had already been advanced. Shutting the door when you knew your horse was about to bolt, while in the process opening the door of everyone else's stables, you might say. I'm not saying they did anything illegal; rather I'm just suggesting you might want to be selective with your sympathies

So the parent company exchanged unsecured loans to its trading subsidiary for secured loans (mortgages)? As you say, probably not illegal, though if I was an unsecured creditor i'd be checking it out as there are some laws around this I think? Either way, if that's what happened then it's a shi**y thing to do as its just passing your own losses onto your creditors.

 

[sailorman]

So the parent company exchanged unsecured loans to its trading subsidiary for secured loans (mortgages)? As you say, probably not illegal, though if I was an unsecured creditor i'd be checking it out as there are some laws around this I think? Either way, it's a shi**y thing to do as its just passing your own losses onto your creditors.

Its called Capitalism

 

[jfm]

@Nick, #26 Yup, sort of. A more precise description might be that the trading subsidiary granted security on pre-existing loans. There are laws connected with this so it doesn't necessarily follow that folks who do this get away with it scot free. Depends on the precise facts, and on how able/organised/funded the liquidator and the injured parties are to invoke the laws and pursue the relevant parties

 

[jfm]

Many thanks for this info, JFM, but do you know how this arrangement would effect the possible future sale of one of these boats now Opal has ceased trading?

Cheers, Allan

You'd want to tread carefully buying those boats. First, you're buying from a company in liquidation (if indeed a liquidator has been appointed, which may not be the case yet). Second, you need to have the mortgage cleared no later than the time you hand over the money, and you're dealing not with a bank (who have clear consistent processes) but with a mortgagee who is sort of in bed with the seller, so to speak. To get this right you need to know what you're doing or budget for say £4k in legal fees.

 

[jrudge]

I used to be in banking ( tough admission I know!) but then ( and assume now) such an action would be designed to defeat creditors and hence unless there Directors could prove there was a sound reason for doing it ( honest belief that doing so gives the company better prospects etc) it is illegal.

HOWEVER, and it is a huge however the liquidator will only pursue such an action if someone wants to fund it - i.e. the creditor who has already lost money and hence risks losing more as nothing regards the law is a certainty.

As a bank we had deep pockets, but on all the ones I was involved with (1990's recession so quite a few!) there was no way they would fund it so the people got away scot free. One bloke to the piss to an astonishing degree - all assets moved to wife name to defeat a gtee, but if we started action which would cost £££ she would have transferred them to her brother or whatever... and the legal fees would continue.

The law is an ass!

This aside - JFM is right - if you buy it do tread carefully. The company is probably a mortgagee in possession, but if the underlying transaction is dodgy who knows what claims may come out.

 

[AllanG]

You'd want to tread carefully buying those boats. First, you're buying from a company in liquidation (if indeed a liquidator has been appointed, which may not be the case yet). Second, you need to have the mortgage cleared no later than the time you hand over the money, and you're dealing not with a bank (who have clear consistent processes) but with a mortgagee who is sort of in bed with the seller, so to speak. To get this right you need to know what you're doing or budget for say £4k in legal fees.

Many thanks for this sound advice, and I think I'll pass on trying to pursue this boat further, as it looks like it may become very complicated, and I certainly can't afford to take a risk on a dodgy deal.

 

[Nick_H]

You'd want to tread carefully buying those boats. First, you're buying from a company in liquidation (if indeed a liquidator has been appointed, which may not be the case yet). Second, you need to have the mortgage cleared no later than the time you hand over the money, and you're dealing not with a bank (who have clear consistent processes) but with a mortgagee who is sort of in bed with the seller, so to speak. To get this right you need to know what you're doing or budget for say £4k in legal fees.

I'm surprised you don't think it's safe to buy from the liquidator (if there is one), as I assume they would be licensed and insured? We routinely buy industrial plant and machinery from liquidators, and don't check title as we would if buying from a company or individual.

 

[beejay190]

I do hope that they are not holding any brokerage boat sales proceeds that have not yet been passed on to the seller.

 

[jfm]

I'm surprised you don't think it's safe to buy from the liquidator (if there is one), as I assume they would be licensed and insured? We routinely buy industrial plant and machinery from liquidators, and don't check title as we would if buying from a company or individual.

Yes, the liq/admins will act in good faith, and will generally only sell if they are sure they have title, but:

1. for a retail purchaser of a boat you get more limited SOGA protection from a liquidator/administrator than you would in the ordinary course, so you're carrying more risk if something goes wrong with the boat; and
2. the mortgagee is kind of an insider so you have extra legwork to make sure their mortgage is removed. The liq/admin will likely not warrant that to be the case and you'll be caveat emptor on that point

In other words, while the liq/admin will be honest, you have much more caveat emptor with this transaction than in a normal new boat purchase

 

[jrudge]

Bear in mind that the company that has the mortgage over the boat will now - I assume - be Mortgagee in Possession so it will be them selling the boat, not the liquidator.

A Mortgagee (eg a bank) would normally take possession, sell the asset for a fair market price, then account to the liquidator for either their surplus, or put in a claim for unsecured losses.

The challenge here (as described) is the Mortgagee is not a bank, but a related party, who has in effect been preferred (they will get their money before others) which totally on the face of it based on what was said here would be an illegal transaction. It maybe fine. I don't think anyone is saying don't buy it, what is being said is that if interested at least get a lawyer involved to make sure you don't loose the value of a boat!

 

[jfm]

Yup. And thing is jrudge, that if the MiP does not have a valid mortgage (because for example, the grant of the security was itself an unlawful dividend and therefore must be returned, and/or a preference) then it is merely a purported MiP not an actual one. Once that situation arises you need to run a mile as a buyer beucase you do not know which of mortgagor and mortgagee has title to pass to you

(The potential argument of unlawful dividend is particularly strong in this case because the mortgagor was a 100% direct subsidiary of the mortgagee)

This may be a canine early morning meal

 

[herbster]

If any of you want to contact someone about the boats interested in I believe a member of the team at Opal now works at Sussex Boat Shop in the Marina 01243 514292 and may be able to help put a deal together. Let me know how you get on

 

[herbster]

Have you checked out the Jeanneau or Parker models?

 

[Imperial One]

Here is what has just appeared on IBI NEWS about this - seems they are blaming competition as the cause!

“We were undercut by outside traders”, says former finance manager

Opal Marine, the UK yacht brokerage and marine services company, has ceased trading and gone into liquidation. The Chichester Marina-based company shut up shop seven days ago.

Former finance manager Jey Kanthan told IBI’s sister publication Yachting Monthly: “There are not enough funds to pay the remaining four employees, the company is insolvent and the directors are drawing up a long list of creditors.”

Kanthan said part of the problem was outside contractors – including engineers – being allowed on site to work on yachts. “They did not have our overheads and therefore were able to undercut us.”

He also said business was impacted when other brokerage companies started to operate from the Premier Marina in West Sussex.

Anyone who wants to list their name as a creditor or receive information on what happens next should contact Jey Kanthan on Tel: +44 (0)20 7079 2749 or write to him at Bramptonia Ltd, 14 Little Portland Street, London W1W 8BN.

 

[jfm]

Keep up at the back!
(Posts 19,20,21 above)