Genmar trustee looks to avoid $20.57 million in engine, parts payments

By Caroline Salls

Pittsburgh, May 16 - Genmar Holdings, Inc.'s Chapter 7 trustee filed a complaint Wednesday with the U.S. Bankruptcy Court for the District of Minnesota in an attempt to avoid and recover $20.57 million in transfers made for engines or parts sold.

The defendants are Brunswick Corp. and its operating divisions Mercury Marine, Crestline and Attwood Corp.

According to the complaint, $15.74 million of the transfers in question were made in the year before Genmar and its subsidiary debtors filed for bankruptcy, and $4.83 million were made in the three months leading up to the bankruptcy filings.

Chapter 7 trustee Charles W. Ries said Genmar and the purchasing subsidiaries were insolvent at the time of the transfers or became insolvent as a result of the transfers.

In addition, the trustee said the holding company "received nothing in exchange" for the transfers. Instead, any value was provided to the purchasing subsidiaries.

Genmar is a Minneapolis-based boat manufacturer that filed for bankruptcy on June 1, 2009. The Chapter 11 case number is 09-43537.

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