This past July, my family and I embarked on a much-needed midsummer break from the grind. Our days went something like this: swim, boat, eat, repeat. We were turned off and tuned out, and it was grand.
I came back rested and primed to tackle an overflowing email inbox and to transition into the fall boat show season. Straightaway, I reviewed two news stories that were right in Passagemaker’s wheelhouse and that would have reverberations well beyond the long-range cruising community.
The first story is straightforward. Pacific Asian Enterprises, Nordhavn’s parent company, announced that it had concluded its relationship with Istanbul-based Telgeren & Partners to build the 41- and 51-foot models. There was no finger-pointing by PAE or Telgeren; instead, blame was laid at the current economic climate and fluctuating, unpredictable production costs in Türkiye.
Nordhavn’s news came as a surprise in an industry where sales generally dictate a model’s lifespan. The 41 and 51 were remarkably successful: Nordhavn delivered a total of 54 units, with the lion’s share of them—44 completed hulls—attributed to the 41-footer.
PAE president Dan Streech said that Nordhavn was proud of its relationship with Telgeren, and that the most recent boats delivered from the factory were among the finest ever to carry the Nordhavn name. “The [models] were just hitting their stride … It is frustrating that the exciting Nordhavn 41 and 51 projects will end their production runs in this way. They will be going out on top,” Streech said.
Kadey-Krogen’s story is more complicated and heartbreaking, as the company filed for Chapter 7 bankruptcy liquidation in early July. The builder, which acquired American Tugs a few years ago, was slated to celebrate its 50-year anniversary in 2027.
Losing Kadey-Krogen Yachts and American Tugs is a serious blow to power cruisers. Passagemaker has covered both brands for decades, and both were key supporters of our mission, including at Trawlerfest. We befriended the teams that ran the companies and were there as they introduced new models or held well-attended rendezvous for their ardent fan bases.
I think a lot about those buyers whose boats are currently in limbo and may never be delivered. My empathy is also with the people who poured their hearts and souls into trying to make Kadey-Krogen Group a successful venture.
As the bankruptcy proceedings continue, we may never get clear answers on how this happened and why restructuring the business under Chapter 11 was not an option. Our sister publication, Soundings Trade Only, is an excellent place to follow the developments.
Reckoning with the past but moving toward the future often involves facing hard truths. Even as Nordhavn destroys the molds for the 41 and 51, it will push onward with a stacked lineup and continue to introduce new models. My hope for Kadey-Krogen Group is that its creditors will be made whole and that people with boats in build will eventually motor off into the brine or be reimbursed, and that someone will see the value in reviving the brands.
This article originally appeared in the October 2026 issue of Passagemaker magazine.
