Mare Island Dry Dock, LLC filed for Chapter 11 bankruptcy protection. The ship repair and maintenance service provider has made this move following financial troubles, including the permanent closure of the facility in Vallejo, California.
Mare Island Dry Dock, LLC Files for Chapter 11 Bankruptcy
According to federal court records, the company filed a voluntary Chapter 11 petition on February 14. The case is proceeding in the U.S. Bankruptcy Court of the Eastern District of California.
Reno Fernandez of Binder Malter Harris Rome-Banks LLP is representing the company in the proceedings.
Bankruptcy Follows Permanent Closure
The filing follows the company’s complete shutdown of operations. The City of Vallejo confirmed the closure in a December 30, 2025 LinkedIn post, noting the facility had operated for more than a decade.
According to the City of Vallejo, the closure of the Mare Island facility was expected to result in the layoff of more than 80 full-time union and non-union staff members.
City officials cited unexpected business setbacks, including the loss of a key U.S. Coast Guard contract. The contract loss significantly strained the company’s finances. After unsuccessful attempts to secure new financing and contracts, the company shut down operations.
Company Background
Mare Island’s history dates back to 1854, when it was established as the West Coast’s first naval shipyard in Vallejo. Located about 23 miles northeast of San Francisco, it served as the first U.S. naval base on the Pacific for more than 140 years.
The naval operations of Mare Island stopped in 1996, and the facility was decommissioned. In 2013, the site was redeveloped as Mare Island Dry Dock, LLC. Since then, it offered vessel repairs, dry dockings, and overhauls for government and commercial vessels at its 18-acre site.
Other services of Mare Island Dry Dock, LLC included Valve Repairs & Renewals, Internet & VoIP/POTS Telephony, Emergency Ship Services, Internet & VoIP/POTS Telephony, Reduction Gear Repairs, and Turbine Overhauls & Repairs.
Case Related Details
Court filings show that Judge Christopher D. Jaime is overseeing the proceedings of Mare Island Dry Dock, LLC in the court. Additional details in the Chapter 11 case of the Vallejo company are:
- Filing Date: February 14, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-20777
- Estimated Assets: $10,000,001 to $50 million
- Estimated Liabilities: $10,000,001 to $50 million
- Reason for Filing: Restructure business under court supervision
The estimated range of assets and liabilities mentioned above has been added based on data from RK Consultants. It adds that Mare Island Dry Dock, LLC currently owes roughly 100 to 199 creditors in total.
Court filings show that the Vallejo-based ship repair and maintenance service provider submitted a list of the 20 largest unsecured creditors in the court.
The bankruptcy filing of Mare Island Dry Dock, LLC highlights its financial strain that followed the company’s permanent shutdown last. Its latest court-supervised restructuring is expected to help the ship repair and maintenance provider resolve claims from creditors.
