Crosby Marine Transportation: MCA Crisis Triggers $163M Freefall Filing, $60M DIP Draws Multi-Party Objections

Crosby Marine Transportation, LLC and three affiliated entities filed chapter 11 petitions on March 23, 2026, in the U.S. Bankruptcy Court for the Eastern District of Louisiana (Case No. 26-10678), listing assets and liabilities each in the range of $100 million to $500 million. The freefall cases before Judge Meredith S. Grabill cover Crosby Marine Transportation, Crosby Tugs, L.L.C., Crosby Dredging, LLC, and Bertucci Contracting Company, L.L.C., all subsidiaries of non-debtor Crosby Enterprises, LLC.

The filing followed an acute liquidity crisis after merchant cash advance firms redirected customer payments and sent representatives to the company's offices, cutting off operating cash flow in a matter of weeks. The debtors obtained interim approval for a $60 million DIP facility from JMB Capital Partners Lending, LLC on March 25, 2026, though the financing drew objections from at least six parties including PNC Bank, the U.S. Trustee, and multiple secured creditors.

Debtor(s)	Crosby Marine Transportation, LLC (4 jointly administered entities)
Court	U.S. Bankruptcy Court, Eastern District of Louisiana
Case Number	26-10678
Petition Date	March 23, 2026
Judge	Hon. Meredith S. Grabill
Employees	~850
DIP Facility	$60M ($30M new money + $30M roll-up of Hancock Whitney debt); JMB Capital Partners Lending, LLC
Claims Agent	Stretto, Inc.

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Gulf Coast Tug and Dredging Operations

Crosby Marine Transportation and its affiliates operate a marine transportation and dredging business headquartered in Galliano, Louisiana, founded over 50 years ago by Vinton and Kurt Crosby. The total fleet comprises approximately 205 units including 90 tugs ranging from 600 HP to 16,500 HP, serving more than 300 clients across the Gulf Coast and inland waterways. Crosby Dredging operates bucket and suction dredges for coastal restoration and marsh regeneration projects for the Army Corps of Engineers and other government agencies. Through subsidiary Bertucci Contracting Company, the debtors also hold a 49.9% interest in Luhr Crosby, LLC, a heavy marine construction firm that is not a debtor in these proceedings.

Fleet ownership and corporate structure. Approximately 80% of the fleet is owned by a non-debtor affiliate, CMT, and is crewed and operated by Crosby Tugs. The primary holding entity, Crosby Enterprises, LLC, is also a non-debtor. The company stated that tug and dredging operations will continue to serve customers throughout the restructuring process.

MCA Collection Tactics and Liquidity Crisis

The tug business had faced contracting offshore operations in the Gulf of America and customer restructurings, while the dredge business suffered cuts to coastal restoration and dredging projects in Louisiana. To manage cash flow through the downturn, the company relied on merchant cash advance funding from at least 31 MCA parties including Aqua Capital, LLC, Libertas Funding, LLC, and On Deck. The MCA agreements carried rates described in court filings as nearing 100%. By late February 2026, MCA parties had collected the original advances plus over $20 million in additional cash, with weekly ACH payments reaching $900,000.

MCA collection crisis. When the debtors withdrew the MCA parties' ability to draft on their bank accounts in late February 2026, the MCA firms sent letters to customers demanding direct payment and dispatched representatives to the debtors' offices. Customers began withholding payments, creating the liquidity crisis that led directly to the chapter 11 filing.

Other debt pressures. The debtors also faced a technical default on the PNC Bank vessel facility after a collateral valuation shortfall triggered default interest rates. A $10.8 million senior secured note from J.J. Astor & Co. to Crosby Dredging, dated September 25, 2025, was in default as of the petition date due to at least nine missed payments of $295,235.30 between November 2025 and January 2026. The Crosby debtors and certain non-debtor affiliates had also assumed Bertucci's indebtedness to Hancock Whitney to facilitate Bertucci's contribution of equipment to the Luhr Crosby joint venture.

Prepetition Capital Structure and $162.8 Million Debt Load

As of the petition date, the debtors carried approximately $162.8 million in aggregate funded debt across multiple facilities.

Hancock Whitney Facility (acquired by JMB Capital). The largest single facility was the Hancock Whitney credit facility with approximately $29.2 million outstanding, secured by a first-priority lien on the Crosby debtors' accounts receivable and Bertucci's 49.9% stake in Luhr Crosby. On March 20, 2026 -- three days before the petition date -- JMB Capital Partners Lending, LLC acquired this facility from Hancock Whitney via a Notarial Act of Transfer, acquiring all rights as prepetition lender in connection with the DIP negotiation.

PNC Bank facilities. PNC Bank, National Association served as administrative agent, collateral agent, and mortgagee on two prepetition loan facilities totaling approximately $47.4 million: a $38 million syndicated credit agreement dated November 21, 2018, and a $9.4 million KJC credit agreement dated June 28, 2018. Both facilities were secured by first-priority liens on various vessels, charter hire earnings, and insurance assignments.

J.J. Astor senior secured note. J.J. Astor & Co. held a $10.8 million senior secured note (gross loan amount: $8 million) to Crosby Dredging, dated September 25, 2025, secured by a first preferred ship mortgage and UCC-1 financing statements on documented and undocumented vessels and associated equipment.

Fleet facilities. The debtors maintained 14 collateral-based fleet facilities secured by liens on different portions of the fleet, primarily through preferred ship mortgages. Some fleet lenders had also filed UCC-1 financing statements that may give rise to additional liens on inventory and receivables.

Mortgage and intercompany debt. Non-debtor affiliates held mortgage loans from Bank Plus totaling approximately $11.6 million: $3.0 million for Tala Real Estate, L.L.C. (headquarters and warehouse) and $8.6 million for Crosby Marine Repair, L.L.C. (drydock and shipyards). Two demand notes executed by Bertucci in favor of Crosby Tugs were received in exchange for a $30 million accounts receivable balance, related to the Luhr Crosby joint venture contribution.

$60 Million DIP Facility and JMB Capital's Roll-Up

The debtors obtained interim approval on March 25, 2026, for a $60 million senior secured superpriority DIP term loan from JMB Capital Partners Lending, LLC, structured as $30 million in new money and a $30 million dollar-for-dollar roll-up of the prepetition Hancock Whitney debt JMB had acquired three days before filing.

Facility terms. The DIP carries a 12.0% annual interest rate (14.0% upon default), a 2.0% commitment fee on total commitments, a 5.0% exit fee, and a $100,000 work fee paid on March 20, 2026. The interim order authorized $40 million ($10 million new money plus the $30 million roll-up), with an additional $20 million in new money available upon entry of a final order. The maturity date is the earliest of September 30, 2026; a plan effective date; a section 363 sale closing; an acceleration upon event of default; case dismissal or conversion; or 35 days post-petition if a final order has not been entered. The DIP imposes a 25% permitted variance for net operating disbursements on a cumulative four-week rolling basis and requires a minimum subsequent draw of $5 million with three business days' written notice.

Carve-out and collateral. The DIP provides a $2,500,000 post-Carve-Out Trigger Notice cap for professional fees, with up to $50,000 reserved for a chapter 7 trustee. The committee investigation budget is capped at $25,000 for investigating prepetition liens. JMB obtained a priming first-priority lien on substantially all assets, including prepetition collateral, the 49.9% LLC interest in Luhr Crosby, and avoidance actions.

Roll-up rationale. JMB required the roll-up as a condition to providing postpetition financing, and the debtors characterized it as a "critical component of the overall bargain." The DIP motion cited precedent cases including In re Maverick Casinos (2:1 roll-up, ~$17 million), In re Everstream Solutions (2:1 roll-up, ~$20 million), and In re Vertex Energy (2.5:1 roll-up, ~$200 million) to support the dollar-for-dollar structure.

Cash collateral. The debtors also obtained interim authority to use cash collateral on March 25, 2026, subject to an approved budget and adequate protection provisions. Existing secured parties received replacement liens on applicable collateral to the extent of any diminution in value, plus superpriority administrative expense claims under sections 503(b) and 507(b). Cash collateral usage terminates 40 days after the petition date if a final order has not been entered, subject to automatic extensions, or five business days after a written default notice.

Multi-Party DIP Objections and First Day Disputes

At least six parties filed formal objections to the DIP financing and first day motions on less than 24 hours' notice.

U.S. Trustee omnibus objection. The U.S. Trustee filed an omnibus objection to substantially all first day motions. The UST objected to the $30 million roll-up, liens over avoidance actions, waivers of section 506(c) surcharge rights and marshaling, and the consolidated budget that prevented assessment of individual debtor feasibility. The UST also required the debtors to file separate 20-largest-creditor lists for each of the four individual cases, noting the cases are not substantively consolidated.

PNC Bank objection. PNC Bank, holding approximately $47.4 million in prepetition claims across its two facilities, raised multiple grounds: the DIP order improperly grants priming liens on PNC's vessel collateral contrary to prior assurances; the DIP attempts to grant liens on assets owned by non-debtor entities; the full day-one roll-up is premature; proposed adequate protection lacks standard protections including interest payments; and vessel management agreements affecting collateral characterization remain opaque. PNC argued JMB should marshal assets -- specifically the Luhr Crosby equity interest -- before accessing other collateral, and requested a one-week continuance to negotiate a consensual order.

J.J. Astor objection. J.J. Astor, holding the $10.8 million secured note, filed a limited objection focused on improper priming without adequate protection, premature elevation of prepetition debt to administrative expense status through the roll-up before parties could investigate claim validity, waivers of marshaling and section 506(c) surcharge rights, premature fee approval for the DIP lender's professionals, overly broad DIP collateral scope including avoidance actions, and broad stipulations preventing investigation of prepetition lender conduct. J.J. Astor argued the debtors failed to exhaust financing alternatives, offering only "conclusory statements."

Guidry Trust and Bertucci consolidation concerns. The Aaron J. Guidry Trust and related parties -- plaintiffs in separate state court litigation against Kurt Crosby, Crosby Dredging, and Bertucci in the 17th JDC, Lafourche Parish -- objected specifically as to Bertucci, arguing that the $60 million DIP financing constitutes an attempt to substantively consolidate Bertucci with the other three debtors. The objectors asserted that Bertucci is not insolvent, maintains separate ownership, and that Bertucci's only "actual, material, legitimate" indebtedness is to Hancock Whitney.

Additional objections. MC Bank & Trust Company, Equipment Leasing Group of America, LLC, and Kompass Kapital Funding, LLC also filed objections to the DIP financing and/or cash collateral motions.

Raymond James Marketing Process and Luhr Crosby Sale

Luhr Crosby stake sale. Raymond James & Associates, Inc. is marketing the debtors' 49.9% interest in Luhr Crosby, LLC, the heavy marine construction joint venture, contacting approximately 80 prospective buyers. The process is ongoing in coordination with the majority owner, Luhr Bros., Inc.

Recapitalization process. Raymond James also ran a broader recapitalization process, contacting approximately 123 prospective parties -- 73 lenders, 31 equity investors, and 19 strategic buyers. Of those, 60 signed NDAs and accessed the virtual data room. Three parties submitted non-binding indications of interest, but all three were for DIP financing only; no parties submitted proposals for out-of-court incremental liquidity. The JMB Capital proposal was selected as the best actionable financing alternative.

CRO and advisory timeline. Lawrence Perkins, founder and CEO of SierraConstellation Partners, was appointed Chief Restructuring Officer on February 28, 2026, approximately three weeks before the petition date. Raymond James had been retained in late 2025 to explore a sale of the Luhr Crosby stake and was expanded to a comprehensive recapitalization engagement on February 1, 2026.

Key Timeline

Date	Event
1977	Crosby Tugs founded with acquisition of vessel Paddy Crosby
November 2018	PNC Bank $38M Syndicated Credit Agreement executed
September 2025	J.J. Astor $10.8M Senior Secured Note to Crosby Dredging
Late 2025	Raymond James retained to explore sale of 49.9% Luhr Crosby interest
February 1, 2026	Raymond James engagement expanded to comprehensive recapitalization
February 28, 2026	Lawrence Perkins (SierraConstellation Partners) appointed CRO
Late February 2026	MCA weekly ACH payments reach $900,000; debtors cut off MCA account access
Early March 2026	MCA parties send letters to customers demanding direct payment; representatives sent to debtors' offices
March 2, 2026	Discussions with JMB Capital commence
March 19, 2026	JMB submits non-binding indication of interest for DIP facility
March 20, 2026	JMB acquires Hancock Whitney facility via Notarial Act of Transfer
March 23, 2026	chapter 11 petitions filed
March 25, 2026	First day hearing before Judge Grabill; interim DIP and cash collateral orders entered; six parties file objections
April 2026	Final hearing on DIP financing and cash collateral scheduled

Frequently Asked Questions

When did Crosby Marine Transportation file for bankruptcy?

Crosby Marine Transportation, LLC and three affiliated entities -- Crosby Tugs, L.L.C., Crosby Dredging, LLC, and Bertucci Contracting Company, L.L.C. -- filed chapter 11 petitions on March 23, 2026, in the U.S. Bankruptcy Court for the Eastern District of Louisiana.

Why did Crosby Marine Transportation file for chapter 11?

The immediate trigger was an emergency liquidity crisis caused by merchant cash advance firms that redirected customer payments and sent representatives to the company's offices after the debtors cut off their account access. The company also carried approximately $162.8 million in funded debt across multiple facilities and faced industry headwinds in Gulf of America offshore operations and Louisiana dredging projects.

What is the DIP financing in the Crosby case?

JMB Capital Partners Lending, LLC provided a $60 million DIP facility: $30 million in new money and a $30 million roll-up of prepetition Hancock Whitney debt that JMB acquired three days before the petition date. The facility carries a 12% interest rate, a 5% exit fee, and matures no later than September 30, 2026.

Who are the professionals in the Crosby bankruptcy?

Lugenbuhl, Wheaton, Peck, Rankin & Hubbard serves as debtors' counsel, SierraConstellation Partners as restructuring advisor (with Lawrence Perkins as CRO), Raymond James & Associates as investment banker, and Stretto, Inc. as claims and noticing agent.

Who is the claims agent for Crosby Marine Transportation?

Stretto, Inc. serves as the claims and noticing agent.

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