This move aims to address the mounting financial challenges they’ve faced in recent years. This filing, which includes the marina, its associated Estuary restaurant, and the One°15 sailing club, was reported using data from PACER (Public Access to Court Electronic Records).
A hub for New York’s boating community
One°15 Brooklyn Marina, managed by Singapore-based SUTL Group and owned by SUTL Investments Pte, is an integral part of Brooklyn’s waterfront scene. The marina, which sits beside Pier 5 in Brooklyn Bridge Park, offers docking services for an impressive range of vessels, including superyachts up to 91 meters long, historic boats, and smaller sailboats. It also operates various boating programs, such as a sailing school, children’s activities, and kayaking lessons, serving both yacht owners and the local community.
Despite its prestigious location and services, the marina has been plagued by financial difficulties since its development. The report has it that construction delays and budget overruns were among the first indicators of trouble. Initially set to open in 2017, the marina’s launch was delayed by three years, finally opening its doors in 2020 with a development cost nearly double the original estimate.
Operational struggles
While the marina’s location offers stunning views and access to vital waterways like New York Bay and the East River, it has also posed significant structural challenges. The marina’s developers have had to contend with the complex confluence of tidal flows from the Hudson River and the broader bay area, making pier construction and wave abatement particularly difficult. These issues have exacerbated the financial strain on the business.
Moreover, ongoing operational costs, compounded by the loss of initial investor support last year, left the marina unable to meet its financial obligations. Reports show that over $500,000 in unpaid rent was owed to Brooklyn Bridge Park, further stressing the marina’s viability. This financial instability prompted the owners to seek Chapter 11 bankruptcy protection.
Chapter 11 filing
By filing for Chapter 11, the owners are looking to reorganize their debts while continuing day-to-day operations at the marina, the Estuary restaurant, and the One°15 sailing club. Chapter 11 is often seen as a strategy to allow businesses to restructure while protecting them from immediate closure, giving them time to negotiate with creditors. According to experts like Adam Stein-Sapir of Pioneer Funding Group, the bankruptcy filing might improve the chances of selling the marina and its associated businesses because buyers can acquire them free of existing liens.
The ownership group, led by principal Estelle Lau, has retained the law firm Kirby Aisner & Curley to guide them through the bankruptcy process. Their primary objective now is to find a potential buyer while negotiating with creditors to resolve the debts they’ve accrued. As part of the restructuring, the court has sanctioned the joint administration of the bankruptcy cases for the marina, restaurant, and sailing club. While they will continue to function as separate entities, they are now all under the umbrella of One Edge Marina Finance Company.
