Edenton businessman reports $574,000 in assets; filing raises questions about repayment to creditors

By Nicole Bowman-Layton

EDENTON — Michael A. Reardon, the businessman whose plans to expand yacht manufacturing in Edenton fell apart amid lawsuits and financial disputes, has filed for personal bankruptcy protection, reporting more than $3.8 million in debts and approximately $574,000 in assets.

Reardon filed for Chapter 7 bankruptcy Sept. 30, 2026, in the U.S. Bankruptcy Court for the Eastern District of North Carolina, according to a 67-page petition. The document is available below this article.

The filing list $3,825,075.86 in total liabilities, including $3,275,722.68 in unsecured debts and $549,353.18 in secured debts.

Unsecured debts generally are not backed by specific property that a creditor can claim if the borrower fails to pay, according to Administrative Office of US Court’s official Bankruptcy Basic guides. Secured debts, such as mortgages, are tied to property or other collateral.

Reardon reported assets totaling $573,857.50, most of which consisted of his Edenton residence on Yeopim Road.

The bankruptcy follows financial difficulties involving Reardon’s yacht-building ventures, including Edenton-based Daedalus Composites and other boating businesses associated with him.

The Albemarle Observer previously reported on lawsuits, unpaid financial obligations and the collapse of an expansion proposal that could have brought as many as 200 manufacturing jobs to Chowan County.

Unlike those earlier business disputes, the Chapter 7 case involves Reardon’s personal finances.

What Chapter 7 bankruptcy means

Chapter 7 bankruptcy allows individuals to seek relief from certain debts through a federal court process.

According to the Administrative Office of the U.S. Courts, a court-appointed trustee reviews the debtor’s finances and determines whether any property not protected by law can be sold to repay creditors.

Some property may be protected by exemptions, while mortgages and other valid liens generally remain enforceable against the property securing them.

If assets are available, the trustee distributes proceeds according to priorities established by federal bankruptcy law.

Some creditors may receive part of what they are owed. Others may receive nothing.

Filing for bankruptcy also generally triggers an automatic stay, temporarily stopping most collection lawsuits and other attempts to collect debts from the person who filed. Certain exceptions apply.

The filing itself does not immediately erase Reardon’s debts.

If the court grants a discharge, Reardon would no longer be personally responsible for many of the debts covered by it. Some obligations cannot be discharged, and creditors may challenge the discharge of particular debts.

Whether Reardon’s creditors will receive payment, and how much they might recover, cannot be determined from the initial filing.

Reardon filed without his wife

The bankruptcy petition identifies Reardon as the sole debtor.

His wife, Jayme Lynn Bain Reardon, is identified as his non-filing spouse. She is not seeking bankruptcy protection through the Sept. 30 petition.

That distinction is important because a bankruptcy discharge generally applies only to the person who filed.

If Bain Reardon independently owes or guaranteed a debt, her husband’s bankruptcy would not ordinarily eliminate her responsibility for that obligation.

However, a non-filing spouse’s income and certain property interests may be relevant when the bankruptcy court reviews household finances and determines which assets belong to the bankruptcy estate.

Reardon’s schedules report combined monthly household income of $15,000 and monthly expenses of $15,427.17.

He identifies his occupation as a consultant and lists American Yacht Corporation in Norfolk, Virginia, as his employer. The address of the company is listed as 101 W. Main St., Suite 500, Norfolk, the corporate address of the law firm, Woods Rogers Vandeventer Black, PLC, which specializes in maritime and admiralty law.

The address may serve as the registered agent for the company rather than its physical headquarters, according to Virginia’s State Corporation Commission.

The documents do not establish that Bain Reardon is personally responsible for the debts listed in her husband’s bankruptcy.

Catalina Yachts among largest creditors

Catalina Yachts Inc. is among the largest creditors identified in Reardon’s bankruptcy schedules, with a listed unsecured claim of $1,778,990.15.

The claim follows litigation involving the attempted acquisition and operation of the boat manufacturer.

The Observer previously reported on a lawsuit filed by Catalina in Pinellas County, Florida, in September 2025. Catalina alleged breaches of a commercial lease, promissory note and related financing agreements.

Reardon’s bankruptcy filing also identifies other lenders and financing companies among his unsecured creditors.

The amounts listed in the bankruptcy schedules represent debts Reardon reported. They do not establish the amounts creditors will ultimately be allowed to recover.

Even a creditor who has obtained a court judgment may be unable to collect the full amount if Reardon lacks sufficient assets or if the obligation is discharged through bankruptcy.

Property transfers

Reardon’s bankruptcy filing also identifies three real estate transfers completed before he sought bankruptcy protection.

According to his statement of financial affairs and Chowan County deed records, the transactions involved:

• Property at 111 S. Oakum St., transferred to William and Anne Atkinson in June 2026.
• Property at 307 E. Queen St., transferred to ROX Mutual LLC in December 2025.
• Property at 301 E. Queen St., transferred to BGH Holdings LLC in February 2026.

The bankruptcy documents identify amounts associated with the transfers, although those figures do not necessarily represent the full recorded sale prices.

Under federal bankruptcy law, a trustee may review certain transactions made before bankruptcy and, in specified circumstances, seek to recover assets for creditors.

The bankruptcy schedules also identify his residence at 328 Yeopim Road in Edenton, valued at $535,856.

Whether any equity in that property could be available to creditors depends on mortgages, other liens, applicable exemptions and the trustee’s review.

Earlier plans promised jobs in Edenton

Reardon’s bankruptcy is of local interest because of his previous plans to expand boat manufacturing in Chowan County.

As the Observer reported in November 2025, Reardon approached the Edenton-Chowan Partnership in 2024 with a proposal to acquire industrial property along Midway Drive for an expansion of Daedalus’ manufacturing operations.

The proposal included projections for substantial job growth, with employment potentially reaching 200 workers as the expansion developed.

Partnership records reviewed by the Observer showed that local officials proposed a lease arrangement tied to development benchmarks rather than an immediate sale of the property.

The agreement was never completed, and the property was not transferred to Reardon’s business.

The Observer subsequently reported on lawsuits and financial disputes involving Reardon’s business operations in several states.

What happens next

In a Chapter 7 case, the trustee reviews the debtor’s financial disclosures and conducts a meeting of creditors, during which the debtor answers questions under oath about finances and property.

The trustee determines whether assets are available for distribution and whether any transactions warrant further examination.

Creditors may also have several chances to challenge the discharge of particular debts or raise objections under federal bankruptcy law.

For businesses and individuals who are owed money, the outcome depends on whether the bankruptcy estate contains assets that can legally be used to repay creditors.

A bankruptcy filing does not guarantee repayment, and a creditor’s inclusion in the schedules does not mean that creditor will receive the full amount listed.

The Sept. 30, 2026, petition establishes the debts and assets Reardon reported when he sought protection from creditors. The bankruptcy process will determine what property, if any, can be used to satisfy those obligations and whether Reardon ultimately receives a discharge of eligible debts.