Wow, I've known Matt and his brother David for years.

For the past two months, a major nationwide boat dealer based in downtown Grand Rapids has been embroiled in three separate lawsuits between a supplier and two banks, with fraud accusations and hundreds of millions of dollars at stake.

On May 20, the financial maelstrom engulfing Tommy’s Boats LLC reached a new phase when the company filed for bankruptcy protection to hopefully find a buyer and pay back creditors at “the highest possible value.”

Company president and owner Matthew Borisch on June 4 offered his version of the events in a 21-page declaration. He blames Tommy’s Boats’ primary supplier for leaving the company with no choice but to file for bankruptcy, having intentionally “bled (Tommy’s) dry” through an elaborate inventory oversupply scheme.

Meanwhile, Tommy’s Boats’ two largest creditors have targeted the company in separate lawsuits.

Founded in 1981 in Denver, Colo., Tommy’s Boats was later acquired by the Borisch family and now lists 15 dealerships in eight states. In late 2022, the company opened a new 16,000-square-foot dealership in Comstock Park just north of Grand Rapids, and bills itself as one of the largest pontoon dealers in North America.

Matthew Borisch serves as president and owner of Tommy’s Boats. Simplified Facilities LLC, a holding company tied to Borisch, acquired the former Peninsular Club building in downtown Grand Rapids in March 2023 from RDV Corp. for Tommy’s corporate headquarters.

How much money is at stake? Hundreds of millions of dollars.

M&T Bank claims that the collateral on Tommy’s Boats dealership lots is worth approximately $85 million. Selling off the collateral would go toward paying more than $115 million in debt principal and more than $2.2 million in interest that Tommy’s Boats allegedly owes to the bank, plus attorney’s fees and other expenses.

Much longer article: https://www.crainsgrandrapids.com/ne...in-bankruptcy/