Discovery calls in administrators
Discovery Yachts Group Ltd has appointed administration - and been sold in a pre-pack deal - following the conclusion of undefended court action which has left the company owing nearly £1.2m.
The company appointed Chris Moore of K J Watkin & Co. as liquidator on 9 December 2019 and went into administration ten days later. Continuity of employment has been assured.
"I can confirm that Chris Moore was appointed administrator of Discovery Yachts Group Ltd on 19 December 2019. Immediately upon appointment a pre-pack sale was completed to Binti Marine Holdings Limited, a UK subsidiary of Binti Holding GMBH," said Simon Wall of K J Watkin & Co.
"This business rescue has ensured continuity of employment for all employees and all yachts in build will be completed."
Breach of contract
It is understood that the decision was made to protect the company from a lawsuit brought by a customer, the conclusion of which took place on 16 December.
Andrew France claimed breach of contract against Discovery Yachts Sales Ltd and Discovery Yachts Group Ltd following the latters' failure to make good defects in a £1.5m yacht Mr France had ordered in 2015.
Defects included a leak around the mast collar, a flood in the forward cabin and a generator failure. Despite Mr France being told the problems would be resolved, this did not happen.
Following the case heard by Mr Justice Teare in the High Court which Discovery Yachts failed to attend, damages of £911,113 and £262,957 were awarded against Discovery Yacht Sales Ltd and Discovery Yachts Group Ltd respectively.
It is unclear whether Discovery Yachts Sales Ltd has also appointed administrators. No one from Discovery Yachts Group Ltd was available for comment.
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