Often Dan Streech states, “PAE has no debt.” This statement might refer to them not owing their bank any funds. While this may be true on paper, in reality PAE still owes purchasers a completed yacht built to high standards and they also have a supplier they must pay. In addition, it is likely they have clients who have made advanced prepayments towards their yacht’s build where the total exceeds the value of the boat in its present state of construction.
Unfortunately, it is impossible to accurately describe the extent of accumulated losses in operations that creates unfunded shortfalls in construction funding to the factories that are contracted to build PAE’s yachts.
Every purchaser of a new build yacht is reminded continuously how well “their” vessel is progressing, how well “their” vessel will look, are invited to visit “their” vessel. The sad Nordhavn Fact is every vessel is actually the property of PAE and only becomes the property of the purchaser after arrival in North America, the factory releases a builders’ bill of sale and is paid in full.
In addition, the threatened ‘new import tariffs” will add to the landed cost of the new vessel build when it arrives in North America.
Nordhavn Facts cannot provide any comfort to Nordhavn customers regarding the tariffs and their consequence to cost, value and resale ability.
Nordhavn Facts can state for sure that when approached about any of the above issues, past customers or problems, the only response from Nordhavn is a false statement. People only lie when there is a reason to lie. Most Nordhavn customers have made their success in life and have started a retirement process of enjoying the fruits of their labors. None want a problem and the anxiety of what will happen if their yacht is defective or delayed. Most purchasers now understand that they are not in control of the success of their yacht build process.
The above is all factual, not intended to speak of the overall quality or value of completed Nordhavn yachts. Nordhavn Facts focuses on the risks and potential problems of a contracted new build and whether history will repeat itself.