Global Ship Systems Closes...

YachtForums · Jul 11, 2007

I haven't received official notification on this, but two separate YF Members have now informed me that Global Ship Systems in Savannah, GA has closed. Global is the old Intermarine / Palmer Johnson shipyard.

Global Ship Systems was established in 2004, when it acquired this venerable shipyard, the history of which is complex:

* Global bought it from Palmer Johnson, who had bought it from WorldCom in 2002.

* From 1999 to 2002, it was owned by Bernie Ebbers, the Chairman of WorldCom, who forfeited it before he went to jail.

* Ebbers had bought from Intermarine USA in 1999 and operated it as Intermarine Inc.

* Intermarine USA had bought it from Saylor Marine in 1987, for the purpose of building minehunters for the U.S. Navy.

* Saylor Marine had bought it from Aegis Corp. in 1984.

* Aegis Corp. had bought it from Walter Lee Mingledorff in 1968.

* Walter Lee Mingledorff founded the shipyard in 1912 as Savannah Machine & Foundry.

Global was primarily a megayacht refit yard, but had the ability to build yachts. The closing of this site leaves around 150 people without jobs.

Rene GER · Jul 11, 2007

That's very bad news . If I remember right, they had good references like an refit of Katana (now Enigma)

BTW, the website is down

airship · Jul 18, 2007

I find this very sad. It's always distressing to hear about shipyards that shut down. If yachts have souls (many seafarers would admit that they do, just like proper ships), then such an event must represent at least "a severe disturbance" in the "force" surrounding any vessel that had been constructed there. OB1...?!

Unfortunetly, there are quite a few instances that I can recall where yacht yards have been "forced to close" for sometimes obscure reasons. It's a murky business sometimes, is yachting...

RVN-BR · Jul 26, 2007

let me budge into this thread to pose a rather silly question (not to me but to all who know this it will surely be)...

what is the deal with the Intermarine brand? I've often heard ot the reputable (right?) Intermarine Savannah shipyard. I later gathered that it had recently been sold to palmer johnson but never found anymore hard evidence. So is this the end of the yard that made all the Intermarine yachts?

What will this do, if anything, to the price of yachts from that yard? I was pointed in the direction of one recently, and upon looking for more about the yard couldnt find much xcept that they were bought by PJ...

Is PJ doing something else with it? its workers? anyone have more details?

CaptTom · Jul 27, 2007

Here's a pic of the yard in better days (back from May 2005). I remember seeing this yard in the PJ magazine ads many years ago, and then first hand when cruising up the ICW. Always impressive to see big sheds like those.

Admin Edit: Image Removed

inquisitive · Jul 31, 2007

Global Ship Systems

Global Ship Systems definitely shut their doors on June 29. The Savannah Morning News published a story about it in their July 12 edition. (www.savannahnow.com)

The picture you posted, Capt Tom, is of Thunderbolt Marine, Inc. (which was formerly leased by Palmer Johnson). The owner took back possession of the yard sometime in either 2003-2004.

Just to clarify: the photo is not the Global Ship Systems (or former Intermarine Savannah) yard that has recently closed. The GSS yard had a 535' graving dock with a retractable cover ... that was impressive!

As for TMI's repair and refit facility, they are still up and running ...

And yes, the whole situation is sad. Many of the individuals who worked there (301 N. Lathrop shipyard), persevered through all of the changes of ownership and management over the past 10-12 years.

It will be interesting to see what happens to the yard next.

KCook · Jul 31, 2007

Thanks for the clarification inquisitive. And welcome to YachtForums!

Kelly Cook

CaptTom · Jul 31, 2007

Inquisitive,
My apologies to you and everyone. I thought that was the yard. I'll get it removed to avoid any other confusion.
Thanks for the correction.

inquisitive · Aug 1, 2007

No apologies needed ...

The whole Intermarine and Palmer Johnson fiasco caused all kinds of confusion back then. No one knew who owned what and where etc.

And, thanks for the welcome, Kelly.

KCook · Aug 1, 2007

Well see inquisitive .... I had this fantasy of retiring to Savannah .... and getting a part time job at PJ sharpening pencils or something. Now ....

Kelly

YachtForums · Jan 4, 2008

Savannah shipyard auctioned for US $18 million...

By IBI Magazine

The shipyard belonging to Global Ship Systems (GSS) of Savannah, Georgia, was auctioned yesterday for US$17.95 million, according to a story in the Savannah Morning News. One of Global Ship Systems' creditors, Drawbridge Special Opportunities Fund, had foreclosed on the property. It was sold to Drawbridge and Fortress Credit Corp, who created a "dummy" corporation in order to sell it on the open market.

"We're going to entertain offers from everybody in the world who's interested in having what could be a first-class shipyard in Savannah," Shalom Kohn of Sidley Austin LLP, a company that represents Fortress Investment Group, told the paper.

Global CEO Rob Creech told the paper that he will try to negotiate with Kohn's company in the hopes of buying the shipyard back. He said that he had previously made a US$18 million offer for it.

But Kohn told the paper that Creech made no real offer. "If they had a real bid, they could have stood up and announced $18 million here," Kohn said.

Creech had acquired the former Intermarine Savannah shipyard in June 2004 from Palmer Johnson owner Timur Mohamed for US$14 million. Creech and several partners established Global Ship Systems as a refit yard for yachts and other ships. But GSS had some financial difficulties early on after setting up operations, and according to the paper, had amassed a net loss of US$20.4 million by April 2007. Court filings show that by November 2007, GSS owned Drawbridge, its primary creditor, US$38 million.

"There's a shortage of shipyard capacity (in Savannah) and this will be a very valuable asset for someone who wants to buy it," said Kohn. He told the paper that companies interested in purchasing the property have already contacted him.

Documents filed late last month in the United States Bankruptcy Court for the Southern District of Georgia in Savannah show Creech had a US$17.5 million offer from Edison Chouest, a global offshore vessel service company, in July. But the deal fell through.

GSS laid off 130 workers and shut its doors in June.

(4 January 2008)
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Global Ship Systems Closes...

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