In July 2026, the acquiring organization Kadey-Kroger and American Tug entered Chapter 7 liquidation. Kadey-Krogen Yachts, KKY Holdings LLC, and American Tugs LLC filed voluntary Chapter 7 petitions on July 6, 2026, in the U.S. Bankruptcy Court for the District of Delaware.3 Chapter 7 is a liquidation proceeding, not a Chapter 11 reorganization designed to keep the companies operating while they restructure.
Who bought American Tug?
The buyer was the Kadey-Krogen Group, encompassing Kadey-Krogen Yachts, Summit Motoryachts, and, after the transaction, American Tug. The acquisition was presented as an expansion that would give the group a respected La Conner-built line of semi-displacement cruising tugs, while retaining American Tug’s separate identity and ongoing production.4
Is the purchasing company bankrupt?
Yes. The Kadey-Krogen organization and American Tugs LLC are in Chapter 7 cases. That means their assets are being administered for liquidation, rather than the companies continuing under a court-approved restructuring plan.5 Entity Status Practical meaning Kadey-Krogen Yachts LLC Chapter 7 filed July 6, 2026 Liquidation of the yacht-building business KKY Holdings LLC Chapter 7 filed July 6, 2026 Liquidation of the parent/holding entity American Tugs LLC Chapter 7 filed July 6, 2026 American Tug’s operating business is part of the liquidation
The American Tug brand, molds, tooling, intellectual property, inventory, and work in progress could potentially be sold to a new owner through the bankruptcy process. That possibility is different from the former company continuing to operate on its own.
How did this happen?
The available reporting suggests a combined cash-flow and debt crisis at the group level, compounded by delivery difficulties and a more challenging new-yacht market. Court-related reporting described substantial liabilities and creditor claims, including reported debts to an overseas builder and tax obligations in Washington state.6
- Reporting based on bankruptcy materials described major secured and unsecured claims and a significant lack of available cash at the time of filing.7
- Customers with boats in build reportedly experienced delays and uncertainty before the liquidation. Those accounts describe serious concerns, but allegations about misconduct should not be treated as court-proven findings absent an adjudication.8
- High interest rates, expensive financing, and competition from used boats have been broader pressures on the market for new cruising yachts, although public reporting has not established a single official explanation for the group’s collapse.9
Fuel: 640 gallons Water: 210 gallons Holding: 60 gallons Water Heater: 11 gallons
What it means for owners
Existing American Tug boats remain serviceable: engines, transmissions, electronics, pumps, and many other components are supported by their original outside manufacturers and independent marine-service businesses. The more immediate risks concern factory warranty claims, unfinished builds, deposits, proprietary parts, factory documentation, and future support for brand-specific components.
New (2023): Garmin 8616 and Garmin 8616xsv touch-screen color chart plotter displays at helm HD digital radar New (2023): Garmin Reactor 40 Autopilot New (2023): Garmin GT51M-THP Scanning Sonar with Chirp ClearVu/SideVu New (2023): Garmin GMI multifunction display
New (2023): Garmin wind transducer New (2023): Garmin VHF
New (2023): Stern facing camera Hailer
Compass
For owners, the key question is whether a buyer acquires the American Tug assets and chooses to continue the brand, support legacy boats, or both. Until that occurs, independent Pacific Northwest yards, component manufacturers, and the American Tug owner community are likely to be especially important sources of practical support.
550 HP Cummins diesel engine with electronic controls
Side Power variable speed bow and stern thrusters with (New 2023) variable speed control head and dock hold. Cruising speed: 7.5 – 12 knots
Eco cruise: 7.5 – 8 knots at approximately 5 gph Max speed: 16 knots
House battery bank: 3 x 8D AGM (735 amp hours total) (New 2024)
8D AGM engine start/stern thruster battery (New 2024)
4D AGM battery for bow thruster & windlass (New 2025)
Separate Group 24 genset start battery (New 2025)
New (2025): Solar panels (750 watts) 9kw Northern Lights generator
240v 50 amp shorepower with cord retractor Blue Seas smart battery combiner 2800 watt Magnum Energy power inverter/charger (125 amp)
Notes
- Power & Motoryacht, “Kadey-Krogen Acquires American Tug,” May 18, 2023. Read source ↩
- Yacht Harbour, “The Kadey-Krogen Group Announced the Acquisition of American Tugs,” May 19, 2023. Read source ↩
- PacerMonitor, Kadey-Krogen Yachts, LLC, Case No. 26-11065, U.S. Bankruptcy Court for the District of Delaware, filed July 6, 2026. Case listing ↩
- Power & Motoryacht, “Kadey-Krogen Acquires American Tug,” May 18, 2023. Read source ↩
- Trade Only Today, “Kadey-Krogen Yachts Files for Bankruptcy,” July 7, 2026. Read source ↩
- Crew Pages, “Kadey-Krogen Yachts Enters Liquidation,” August 7, 2026. Read source ↩
- Loose Cannon, “Kadey-Krogen Files for Bankruptcy Liquidation, American Tugs Too,” July 8, 2026. Read source ↩
- Trade Only Today, “They Were Stringing Us Along,” August 27, 2026. Read source ↩
- Powerboat News, “Kadey-Krogen Yachts Files for Chapter 7 Bankruptcy After Nearly 50 Years,” July 8, 2026. Read source ↩
