Bankrupt Everett waterfront developer still hopeful

Published 4:09 am Saturday, May 23, 2009

EVERETT — Despite its decision to file bankruptcy, Everett Maritime is still hoping to redevelop the city’s waterfront.

“We’re in uncharted waters, but our goal is to be able to implement our contract,” company president Bert Meers said Friday.

On Wednesday, Everett Maritime filed bankruptcy in Chicago, saying it owed more than $10 million it couldn’t pay. The company, a division of Maritime Trust in Chicago, is in partnership with the Port of Everett for a $400 million redevelopment that would include 660 condominiums and commercial and office buildings.

Both have agreed to a contract that would have them share expenses and profits.

The port, which is owed more than $1 million by Everett Maritime, could have cancelled that contract at the end of May if the money wasn’t paid. But that was before the bankruptcy filing.

Port officials said they’ll now have to follow through with the bankruptcy, a Chapter 11 filing that would allow the company to try to reorganize itself. That could take a year or more.

Meers acknowledged that the company hadn’t been able to secure financing for the project because of the recession and that the bankruptcy was filed to keep the company from losing its contract.

He said he really couldn’t say much else.

Meers did say the company, which originally had sold 60 condos and accepted deposits, still has money from 15 buyers.

“That isn’t part of the bankruptcy,” he said. “The money is segregated, and we will be contacting everyone and will give them back their money.”