PHOTO BY TOMMY’S BOATSTommy’s Boats has filed for Chapter 11 protection in Texas bankruptcy court, listing nearly $500 million in debt after its alleged breaching of an agreement with M&T Bank, according to a report by Law360.
Tommy’s and more than a dozen affiliates owned directly or indirectly by CEO Matthew Borsch on May 21 hit Chapter 11 in the Northern District of Texas. The debtor listed M&T Bank as its largest unsecured creditor, with a $105 million disputed claim, followed by Mercantile Bank with a $4.7 million claim.
In April, M&T Bank claimed in Michigan State Court that Tommy’s was in default on revolving floorplan financing and that the bank was seeking a receiver.
Tommy’s sued Malibu Boats in Tennessee district court in April over alleged deliveries of $100 million worth of higher-priced, harder-to-sell inventory.
Tommy’s also owes approximately $3 million in taxes, according to its petition.
