According to the report, court documents have shown that receiver Miles Stover, founder and president of Turnaround Inc., is looking to sell "substantially all" assets for US$5.5million to Henry Luken, who is a 50 per cent shareholder in the company.
To date, Stover has restored operations at the company and re-hired more than 70 employees. According to court documents, “The Receiver has taken actions, including termination of the previous accounting staff, and continues to take aggressive actions focused on bringing the confidence factor attached to future financial reports to a proper level.”
Court documents show that Stover found a financial mess revealing, “books of records that indicate a history of very weak internal controls, a general lack of segregation of duties, and non-adherence to generally accepted accounting principles.”
The story explained that since February there have been multiple lawsuits filed against Christensen, including by some of its suppliers. Under the terms of the proposal Luken will resume control of contracts for the completion of hulls 36, 38 and 40 as well as Christensen’s land lease.
The judge presiding is expected to decide on the proposal to sell the assets to Luken on 19 June.
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