The Limestone Boat Company and its wholly-owned subsidiaries Ebbtide Holdings, doing business as “TN Composites” (TN Composites) and Limestone U.S., have filed voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Tennessee – Nashville Division. Limestone expects that the Limestone U.S. Subsidiaries will have a Chapter 7 Trustee appointed by the Office of the United States Trustee. Upon the commencement of the Chapter 7 filings by the Limestone U.S. Subsidiaries, their respective business operations ceased immediately and the Trustee immediately took charge of the assets of the Limestone U.S. Subsidiaries pursuant to the United States Bankruptcy Code. The Trustee is expected to liquidate the assets of the Limestone U.S. Subsidiaries and to distribute the proceeds of such sale proceedings in accordance with the order of priority established under Title 11 of the United States Bankruptcy Code and under the supervision and approval of the Bankruptcy Court.
Going forward the company will focus on the Limestone brand and specifically ongoing efforts to pursue financial restructuring initiatives which are expected to be completed in Q1/23. Until such time as the company resumes manufacturing operations of the Limestone brand, expected in Q4/23 the company is not projecting any revenue at this time. The company remains committed to continuing its long-term operations for the Limestone brand, including its conventional and EV powered offerings as soon as possible, and is also pursuing manufacturing opportunities in Canada for the Limestone brand and its respective models and will provide additional information in this regard as it becomes available.
“The combined effects of a challenging manufacturing environment on the sale and delivery of boats given the impact of the Coronavirus (COVID-19) pandemic on supply chain and labor have caused significant financial distress on our business and The Limestone Boat Company has determined that the best strategy to maximize value will be a voluntary liquidation of Ebbtide Holdings and Limestone U.S. pursuant to an organized and orderly proceeding in the U.S. Bankruptcy Court,” Scott Hanson, CEO of Ebbtide Holdings, and Limestone U.S., said. “The company’s U.S. subsidiaries, Ebbtide Holdings, LLC and Limestone US Inc. lack sufficient liquidity to continue operating in the ordinary course of business and thus will no longer be producing boats in the Tennessee facility. I would like to thank all of our employees for their dedication and support, as well as our vendors and Aquasport dealers.”
Additional details relating to the bankruptcy proceeding by the Limestone U.S. Subsidiaries:
The Limestone U.S. Subsidiaries have appointed Lefkovitz and Lefkovitz in Nashville, TN as legal counsel to assist them in connection with the Chapter 7 Bankruptcy filings.
The Limestone Boat Company’s decision to file voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Tennessee for both Ebbtide Holdings and Limestone US is believed to be the best strategy to maximize value for the stakeholders.
