The case moved fast: a $60 million DIP loan, objections from the U.S. Trustee and lenders, a sale process, and a transfer of assets to a new owner. This update separates court-filed facts from party allegations. Dockets change quickly, so check the latest filings before relying on any date below.
Key Takeaways
- Four operating debtors filed March 23, 2026 in the Eastern District of Louisiana (lead case 26-10678).
- The DIP facility totaled $60 million: $30 million new money plus up to $30 million roll-up.
- Breakwater Buyer LLC was the stalking-horse bidder at $75 million; the final sale price is not readily available.
- Crosby Enterprises filed separately on July 16, 2026.
- A joint plan was filed Oct. 12; a confirmation order is not readily available.
What Was Included in the Crosby Tugs Chapter 11 Filing?
The Debtors and Court Details
According to the court's case page, the March 23, 2026 petitions covered:
- Crosby Marine Transportation, LLC
- Crosby Tugs, L.L.C.
- Crosby Dredging, LLC
- Bertucci Contracting Company, L.L.C.
The lead case is 26-10678, before Judge Meredith S. Grabill. The court ordered joint administration on March 24, for procedural purposes only. The estates were not substantively consolidated, so each debtor keeps separate schedules and claims registers.
Crosby Enterprises Is Not a March Debtor
Crosby Enterprises LLC did not file in March. It filed its own Chapter 11 petition on July 16, 2026 (case 26-11743), as part of a later group of debtors. Any claim against it must follow its own deadlines.
The Business and Its Scale
Crosby Tugs says Vinton and Kurt Crosby founded it in 1977 with its first vessel, the Paddy Crosby. The debtors operate in tug services, dredging, marine transportation, and contracting.
A court filing describes more than 200 vessels and marine equipment across the debtors and non-debtor affiliates, with Crosby Marine owning about 80% of that combined fleet. That is a group figure, not a count for the four March debtors. A reliable employee headcount is not readily available from the public filings.
Why Chapter 11
Chapter 11 is a reorganization chapter for commercial enterprises that want to keep operating and repay creditors over time. The debtor generally stays in control as a "debtor in possession," according to U.S. Courts. The filing stops collection pressure and creates room for a recapitalization or sale.
Why Did Crosby Tugs Seek Bankruptcy Protection?
Management's Explanation
The first-day declaration blamed weakened finances on contracting offshore operations in the Gulf and customer restructurings that hurt Crosby's operations and collections. These are management's explanations, not independent findings.
Liquidity and Secured-Credit Pressure
The DIP and cash-collateral requests show the debtors needed postpetition liquidity. No reliable cash-shortfall figure is readily available from the public filings.
PNC identified itself as administrative agent, collateral agent, and mortgagee under a syndicated credit agreement. It disputed proposed priming liens, vessel earnings, and the treatment of receivables and non-debtor assets. Those are PNC's positions, not adjudicated lien findings.
Merchant Cash Advances
The debtors also litigated merchant cash advance (MCA) agreements, which were structured as sales of future receipts. On June 18, 2026, the court found the Novac agreements to be disguised loans and granted the debtors partial summary judgment on specified counts. The ruling covers only the Novac agreements, not every MCA.
Trigger Versus Long-Term Strain
Specific payment defaults are not readily available from the public record, so none are listed here. A company can hold valuable vessels and still run out of cash. That is the usual logic of a liquidity-driven filing.
Suppliers, employees, customers, and lenders all watch these cases for the same reasons: payment timing, contract performance, collateral, and claim recovery.
DIP Financing, Creditor Objections, and the Sale Process
The JMB Capital DIP Facility
DIP financing is postpetition borrowing by a debtor in possession, subject to court approval. It pays for payroll, fuel, maintenance, insurance, and vendors while the case runs.
The executed agreement with JMB Capital Partners Lending, LLC describes a $60 million senior secured, priming, superpriority term loan:
- $30 million new money
- Up to $30 million dollar-for-dollar roll-up of prepetition obligations
- Interim approval March 25, 2026; final order April 23, 2026
The interest rate is not readily available from the public filings. The creditors' committee alleged a 2% commitment fee and 6% exit fee totaling $6.16 million, calling them above market. That is an objection, not a ruling. A Breakwater filing described DIP maturity as Sept. 30, 2026.
Who Objected and Why
- U.S. Trustee: objected to certain first-day, DIP, and cash-collateral relief, including notice issues.
- PNC Bank: objected to priming liens, collateral, and cash-collateral terms.
- Unsecured creditors' committee: objected to the DIP's economics and protections. It existed by the time of that filing; appointment and counsel details are not readily available.
- J.J. Astor: disputed post-sale vessel valuation and proceeds allocation, not the DIP terms.
An official committee, appointed by the U.S. Trustee, speaks for unsecured creditors and negotiates on their behalf.
Marketing and Sale
Raymond James served as investment banker. Key milestones:
- July 21: bidding procedures approved
- July 28: Breakwater Buyer LLC selected as stalking-horse bidder at $75 million
- Aug. 13-14: auction held
- September 2026: Breakwater Sale Order (ECF 930) authorized a sale of substantially all debtor assets
Separately, an order covered the sale of Bertucci's 49.99% interest in Luhr Crosby to Luhr Bros. Review the order for the full excluded-asset schedule. A Section 363 sale lets a debtor sell estate assets free and clear of interests.
Bloomberg Law described the package as tugs, dredges, airboats, crew boats, and barges, and tied Breakwater to Tallvine. The legal purchaser is Breakwater Buyer LLC.
What Happened to Crosby Tugs After the Bankruptcy Filing?
First-Day Relief and Claim Types
First-day pleadings sought authority to pay employee wages and benefits, pay critical vendors, and use cash collateral. The docket shows employee-pay authority and interim cash-collateral approval. Requested relief is not always granted, so read the orders.
Continued operations do not mean old debts get paid normally:
- Prepetition claims arose before March 23.
- Postpetition obligations arose after.
- Secured claims depend on collateral, not timing.
- Administrative expenses are estate-preservation costs, and they are paid first.
The Ownership Transition
A creditor filing stated, on information and belief, that the Breakwater sale closed around Sept. 15. That is an allegation, not a court finding. A later notice and order addressed transfer of delayed vessels subject to ELGA liens.
The same creditor argued the debtors had no employees or operations after the sale and sought conversion under section 1112(b). The court has made no such finding. Available filings do not confirm which crews, customers, or managers carried over.
Current Status
The latest docket entry is Doc. 1200, filed Oct. 15, 2026. A joint plan and disclosure statement were filed Oct. 12. No confirmation or dismissal order has been entered. Check for sale closing, claims deadlines, retention orders, and open litigation.
What the Case Means for Stakeholders and What to Monitor
Lenders and Distressed Investors
Key items to watch:
- DIP priority and lien validity
- Cash collateral orders
- Sale proceeds allocation
The Astor dispute shows allocation fights can continue after a sale.
Unsecured Creditors and Credit Teams
A proof of claim asserts a right to payment, and the bar date in your case notice controls. Because the estates are separate, file against the right debtor.
- Original debtors: general bar date July 30, 2026; governmental Sept. 21, 2026
- Later July debtors, including Crosby Enterprises: general Nov. 23, 2026; governmental Jan. 12, 2027
Confirm all dates on the claims agent's site. This is general information, not legal advice.
Customers, Employees, and Counterparties
Watch notices for:
- Service continuity and contract performance
- Payment instructions
- Vessel ownership and insurance
Stretto serves as claims and noticing agent.
Tracking Cases Like This
BankruptcyData offers research resources for professionals who need to follow a case from first signal to outcome. Its platform covers filings, dockets, stakeholders, timelines, and outcomes, including DIP, cash collateral, and Section 363 sale activity.
Key Timeline of the Crosby Tugs Chapter 11 Case
- 1977: Founded by Vinton and Kurt Crosby.
- Mar. 23, 2026: Four debtors file (26-10678).
- Mar. 24: Joint administration ordered.
- Mar. 25: Interim DIP approval.
- Apr. 23: Final DIP order.
- June 18: Novac MCA partial summary judgment.
- July 16: Crosby Enterprises files (26-11743).
- July 21 / 28: Bidding procedures approved; Breakwater named stalking horse at $75 million.
- Aug. 13-14: Auction.
- Sept. 2026: Breakwater Sale Order (ECF 930); about Sept. 15 closing per creditor filing.
- Oct. 9: Delayed-vessel transfer notice and order.
- Oct. 12 / 15: Joint plan and disclosure statement; Doc. 1200.
- Latest known status: Plan pending; a confirmation order is not readily available on the docket.
Frequently Asked Questions
When did Crosby Tugs file for Chapter 11 bankruptcy?
March 23, 2026, in the Eastern District of Louisiana, lead case 26-10678. Crosby Marine Transportation, Crosby Tugs, Crosby Dredging, and Bertucci Contracting filed together.
Which Crosby entities filed for Chapter 11?
Crosby Marine Transportation, Crosby Tugs, Crosby Dredging, and Bertucci Contracting filed in March. Crosby Enterprises was not among them and filed separately on July 16, 2026.
Why did Crosby Tugs file for bankruptcy?
Management cited weaker Gulf offshore work and customer restructurings. Liquidity needs, lender disputes, and MCA litigation followed. These are the debtors' explanations, not court findings.
Did Crosby Tugs shut down operations?
The debtors sought and received interim authority to fund operations. A creditor later alleged the debtors had no operations after the sale, which is unproven.
What happened to Crosby Tugs after the bankruptcy filing?
A $60 million DIP, creditor objections, an auction, and a sale order for substantially all debtor assets followed. A joint plan was filed Oct. 12.
Who bought Crosby's assets out of Chapter 11?
Breakwater Buyer LLC, which Bloomberg Law linked to Tallvine. Its stalking-horse bid was $75 million; confirm the final price in the sale order. Review ECF 930 for exclusions.
