Boat maker files for bankruptcy
Challenger Powerboats of Washington, Mo., filed for bankruptcy Friday but didn’t tell the SEC about it until late Monday. The bankruptcy documents say the company has more than $1 million in debts and less than $50,000 in assets, and the SEC filing says the company “has ceased all business and operations.” It also says shareholders are unlikely to get anything when the Chapter 7 liquidation proceedings are complete.
Here’s the question, then: Why did Challenger, whose shares are listed on the OTC Bulletin Board, wait until a full day’s trading had gone by to disclose the bankruptcy? The shares actually went up by 4 cents on Monday, closing at 16 cents.
Challenger has had disclosure issues before, as we’ve discussed in notes about its miscounted boats and missing bottom line. The company laid off most of its employees last month.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 