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May 14, 2008

Marina in Jamestown up for sale

The Dutch Harbor Boat Yard has been put up for sale after the new owners ran into trouble with one of its lenders three years after buying the Jamestown marina.

The Providence County Superior Court has ordered the company’s business, assets and real estate to be sold for the benefit of its creditors, according to Joseph P. Ferrucci, a Providence attorney and the court-appointed “special master” selected to carry out the court’s directive.

Bank Rhode Island, one of the company’s two major lenders, said in a petition filed in March that the company “is in default of its obligations” to the bank because of a failure to make payments according to the loan terms. The bank sought to have the company taken over by a receiver in order to sell the business and its assets.

The boat yard is owned by DHBY LLC, a company whose partners include Robert and Barbara Paterson. The partnership purchased the land and business in July 2005 for $2.65 million, according to town records.

The creditors are owed a total of about $2.4 million, Ferrucci said. They include Bank Rhode Island, which is owed about $1.4 million, and Ocean State Business Development, which is owed about $1.1 million, he said.

In an interview, Barbara Paterson said that her company is in the process of refinancing its loans, and she is confident that she and her husband will be able to hold on to the business.

“We’re not going anywhere,” she said.

Posted by John Kostrzewa  at 8:39 AM | Permalink

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