The agreement means Malibu Boats will pay the amount in cash to the debtors’ estate and Malibu Boats and the Trustee agreed to mutual releases of all outstanding claims between them.
The settlement stems from a series of claims between Malibu Boats and the Trustee of the bankrupt Tommy’s Fort Worth, LLC.
As a condition of the settlement, the Trustee will seek a court order to prevent Matthew Borisch, the primary owner of the debtors, from continuing his claims against Malibu Boats and its affiliates.
The settlement potentially ends a legal dispute that could have had a significant impact on Malibu Boat’s financial position.
The details of the settlement have been filed with the Securities and Exchange Commission (SEC) and signed by Malibu Boats’ CEO, Steven Menneto.
Bankruptcy Court approval
The settlement now needs to be approved by the Bankruptcy Court, however the agreement should allow the company to concentrate on its manufacturing activities and move past the litigation.
As of June 30, 2024, the company holds the number one market share position in the US for performance sport boats with its Malibu and Axis brands, the number one market share position in the US for the 24ft—29ft segment of the sterndrive boat category through its Cobalt brand and is among the leading market share positions in the outboard fiberglass fishing market with its Pursuit and Maverick Boat Group brands.
Tommy’s has been embroiled in three separate lawsuits between Malibu Boats and two banks and filed for bankruptcy protection in May 2024.
Tommy’s Boats alleged that Malibu Boats tried to flood the dealership with high-priced inventory to make Malibu’s sales numbers look better.
