Yet another boat builder is on the ropes.

From today's Wall Street Journal:

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Italian luxury-yacht group Ferretti is struggling to stay afloat. Its
world-renowned brands such as Pershing and Riva, that are favorites of
Brigitte Bardot and Roman Abramovich among others, have seen orders
plummet in recent months as the average €1.5 million ($1.98 million)
price tag has proved too steep or indeed too showy for those keen to
avoid conspicuous spending.

The company's demise -- it defaulted on its debt of more than €1
billion last week and is in crisis talks with bankers -- has been
sudden and sharp. Private equity firm Candover, which owns 60% of the
company, last valued the business at the end of June at around €1.8
billion, a 6% rise on its purchase price two years earlier.

But Ferretti's equity value has likely been entirely wiped out in the
past three months as expected orders from autumn boat shows didn't
materialize. Order cancellations are also up and stage payments for
yachts already in construction have been delayed.
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