Mare Island Dry Dock files for Chapter 11 protection
Mare Island risks closure at a time when the US has committed to rebuilding domestic shipbuilding capacity (Source: MIDD)
California’s Mare Island Dry Dock has filed for bankruptcy protection on February 14th to reorganise its business and pursue a sale or partnership after losing a US Coast Guard maintenance contract. President Steve DiLeo says: “Going into reorganisation is a necessary step toward a sale that will support the interests of all stakeholders.”
The yard reports laying off 65 workers in December but intends to retain about 50 employees during proceedings. The filing followed the award of icebreaker maintenance work to Vigor Marine in Portland rather than Mare Island, despite the company stating it was the low bidder.
Mare Island has operated the former naval base facility since 2013, providing repair services to the US Coast Guard, Military Sealift Command, the National Oceanic and Atmospheric Administration (NOAA) and commercial clients. Management says it is in discussions with potential buyers and exploring options to operate as a going concern. DiLeo says a merger with a larger organisation would allow the yard to compete for bigger contracts, including a potential five-year maintenance deal for the icebreaker Polar Star.
