Swiftships seeks Chapter 11 protection

An iconic St. Mary shipbuilder has less than a month to submit its plan for restructuring its business after filing for Chapter 11 protection in federal bankruptcy court.
The deadline for Swiftships LLC of Morgan City to file its reorganization plan is July 16. Swiftships filed for Chapter 11 on March 18 in the U.S. Western District of Louisiana Bankruptcy Court.
Unlike Chapter 7, in which a debtor company’s assets are often sold with the proceeds going to creditors, the owners of a business in Chapter 11 typically maintain control of operations and work out a plan to repay their debts.
The company’s recent struggles are a setback for a St. Mary shipbuilding industry that has been on the rise in recent months, with the $300 million investment by Saronic and Conrad’s multimillion contract for U.S. Navy berthing vessels.
Another defense contract is being blamed in the industry press for Swiftships’ recent misfortune.
Beginning in 2018, the Navy awarded a series of contracts totaling more than $152 million for construction of seven landing craft utility vessels.
In a 2022 letter to then-Defense Secretary Alejandro Mayorkas and Navy Secretary Carlos Del Toro, U.S. Reps. Clay Higgins and Neal Dunn wrote about problems in Navy procurement affecting small contractors.
Higgins, R-Lafayette, cited Swiftships specifically. He said that in addition to the delays caused by the COVID pandemic, four different managers had worked on the project for the Navy.
Higgins cited “needless stop work orders, delayed payments to SwiftShips and material vendors, and serious design delays. Swiftships has continuously struggled with the acquisition of materials due to the Navy ceding its contractual obligation to pay material vendors.”
The Navy killed the contract in January 2024 because of what it said was a lack of progress on production. Swiftships laid off 100 workers the same year.
Court documents say Swiftships has both assets and liabilities of $10 million-$50 million. The case has been assigned to Judge John W. Kolwe
The shipbuilder has a history that goes back to 1944, when Fred Sewart founded Sewart Machine Works Inc. in Berwick.
According to the company website, Sewart had a vision for an aluminum craft that could engage in military engagements in shallow water.
According to a source close to the family, workers from Steward went on to found Swifships.
By the Vietnam War, Sewart's dream became reality with a river patrol craft — the Swift Boat.
More than 1900 of the vessels were produced during the Vietnam period.
In 1979, the company embarked on an expansion into Texas and Mississippi, and into a joint venture in Singapore.
Swiftships says it owns more than 120 designs and serves clients across 53 countries.