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Help! Sea Trial Findings- hard decision to make

  • Thread starter jointcustody
  • Start date Wednesday at 9:45 PM
  • Wednesday at 9:45 PM

jointcustody

jointcustody

Veteran member.

Hi there, I recently took out a bayliner 4087 for a sea trial- the seller has recently poured over 200k into it in the last three years. The 6bta engines, transmissions, props etc was all rebuilt or replaced. We took it for a proper sea trial- WOT, fully exposed engines, laser gun temp readings, 35+ year marine mechanic looking it over. etc. we saw 18-19knots WOT without the trim tabs working, and WOT rpm of roughly 2750 but tachs weren't in awesome condition. 22x21 4 blade props brand new. We really liked the boat, but; Here were the findings; Per our mechanic; Port engine #5 cylinder leaking diesel from injector, smoking fuel on exhaust manifold. Making mess under engine and bilge. Likely o-ring or seal. --THIS HAS SINCE BEEN FIXED-- Port engine reduction gear output shaft seal leaking tranny oil Dripless shafts on both need major adjustment and/or likely replacement but… My mechanic believes there may be an alignment issue with the shafts, or bent shafts? But likely alignment given recent engine change. There seems to be a borderline shake to both engines, worse on the port side. Maybe the boat was slung on the shafts by accident? possibly causing the dripless seals to fail prematurely and the output seal on the port engine’s reduction gear to fail. They definitely should not be failing with 250 hours on them, and to have the dripless seals leaking (we know per receipts they were already adjusted before) at only 250 hours, and output seal on transmission failing, it suggests a bigger issue. A warranty repair? Likely needs hauling out. Trim tabs not working from upper helm, or at all but did not get opportunity to confirm. Really didn’t get to see the boat perform properly because of that. Questions for the forum; Do you think that the engines should need realignment after 250 hours of run time? is that common when engines are replaced? Like retorquing the lug nuts on your tires? I have heard from several different mechanics that these PSS seals are a Pain in the ___. Is this true? but why would the rear output shaft seal also be leaking on the transmission at the same time with only 250 hours? The seller has agreed to knock $2500 off the purchase price, but if its not alignment and the shafts are bent, could be much more than that. Wasnt able to have shafts checked. Seller is firm at $2500 or will keep boat. I love the boat otherwise. just hoping we dont get stung with bent shafts- the engines had a very slight shake but I would not say terrible- like a C+ if I was to grade it, almost imperceivable actually and only when up on plane. Thanks  

  • Wednesday at 10:15 PM

Suggestion: Estimate the cost to fix any issues you or the boat cannot live with. Add that to the sales price and decide if you would be comfortable with that deal. If repairs turn out to be a lot less then even better. It did not sound like a horrible survey and if so much work was completed and assuming it was done properly that should reduce or postpone your future repair/replacement costs. BTW unless you have deep pockets I doubt you will often run at those speeds. Sounds like it performed fairly well with no overheating or smoking.  

  • Thursday at 12:53 AM

SteveK

Questions for the forum; Do you think that the engines should need realignment after 250 hours of run time? is that common when engines are replaced? Like retorquing the lug nuts on your tires? Click to expand...
  • Thursday at 1:22 AM

lwarden

What version of 6BTA? WOT is low for a 370hp and tachs should tested against a digital one on the crank. If it is a 370hp version it should turn over 3K loaded. Look over the color of the compressor side of the turbos, if the paint has gone dark tan, then they may have been overloaded and you should proceed with caution. The PSS are indeed a pain, but they just may need adjustment or new bellows. I have one on my port side that likes to leak, and this is after bellows replacement and countless adjustments to the engine alignment, checking the prop and shaft for straightness, etc. They just kind of suck for higher shaft speeds IMO. So, I wouldn't put too much emphasis on them leaking. The shafts and seals should be monitored under way to see if there is excessive runout which could explain the vibration and leaks. If there is excessive runout then it could be bent shaft, or engine out of alignment to some extent. Vibration could be many things, including serious engine issues, a fouled injector, prop imbalance, etc. Too many possibilities here. The leaking output seal shouldn't be a major issue and can likely be replaced in the boat if there is good access and depending on the model. In any case, I would want to have the mechanic look at the running gear underway (I'm surprised he didn't). $2,500 isn't going to get you very far sorting all this out so it all depends on how much you are willing to risk the unknowns...  

  • Thursday at 1:50 AM

tiltrider1

I am going only by your statements. Red flag, engines and transmissions rebuilt for $200k and things are still not right. Seller has dumped money he can’t recoup but is willing to walk away! A 4087 is not old enough to need this kind of work. Was it a sinking? A grounding shouldn’t have toasted the engines. If you have given me accurate facts then I am running away. Is the boat for sale for half price of market? Your mechanic appears to be scratching his head about possible engine alignment/bent shaft but has it occurred to anyone to check the strut for proper positioning? Again, this boat sounds like there is a possible major problem. I would start quizzing the broker on why so much work has been done and why the boat is still in need of so much work If you are looking for a DIY project maybe you can get it cheap. If you are looking to buy a boat for boating I would probably pass on this boat.  

  • Thursday at 2:48 AM

RedRascal

Senior Member

The output shaft leak is a bit of a red flag for me. If it was repaired properly it shouldn't leak. So maybe the seal was damaged during a rebuild which may or may not speak to the quality of rebuild. Was this a slap it together rebuild or just an honest mistake. Okay let's say it was assembled correctly but now is failing. That tells me something is out of spec and wore out the seal. So were things checked for in or out of spec with the rebuild or was slapping a new seal on just a quick short term fix to an oil leak when the root cause is a bigger issue. Here is one in my neck of the woods for $99k(USD) 1997 Bayliner 4087 Cockpit Diesel Motor Yacht 41.5' - boats - by owner - marine sale - craigslist I scratch my head with $200k going into a $100k boat. It seems like the boat has had some major problems to require $200k of work regardless of it being USD or CAD dollars. I'd be cautious about moving forward on it, you may not be seeing all the short cuts that were taken with the rebuild.  

  • Thursday at 5:39 AM

mvweebles

tiltrider1 said: I am going only by your statements. Red flag, engines and transmissions rebuilt for $200k and things are still not right. ....... Click to expand...
  • Thursday at 6:53 AM

O C Diver

As far as the transmission leak, it will depend on the manufacturer and model. Some (such as a ZF gear) require the case to be opened (into two halfs) to replace the seal. It's not like an automotive transmission where you pull the old one out and tap in a new one. I would want an estimate based on the make and model. I've had two boats with PSS seals. I installed them and serviced each based on years in service. Like anything else, if you can't do it yourself, find a competent yard. Typically with a boat sitting in the water, a competent mechanic can loosen the propeller shaft flange from the transmission flange and measure with feeler gauges whether the shaft is in alignment with the engine. I would want to know what will likely be required and the estimated cost before going forward. It seems to me that he may have invested the money, but his choice of boatyards with competent mechanics wasn't good. Ted  

  • Thursday at 9:32 PM

Thank you for all your input. Much appreciated. We pick the boat up tomorrow and we are confident the shafts are fine and can adjust/ clean dripless shaft seals to remove the leaks. We had two other mechanics take a look at it and they do not think shafts are bent. Also had a diver check the condition of the bottom/shafts/ props and all appeared in good condition. The engines were 250 hp 6bta's but when rebuilt had heavier camshafts put in and the mechanic believes them to be around 280 hp now. 2600 WOT rpm, so we think it is underpropped by an acceptable amount for these engines, but appreciate your input on that- we found them to hit 2750rpm. This was with full fuel tanks and the ab dinghy hanging off the back. Clean bottom  

  • Thursday at 9:35 PM

Congratulations! Please post pictures with smiles. Peter  

  • Thursday at 9:45 PM

Good deal, sounds like you have a good platform to work with. Keep us posted on the progress and have fun with your new toy!  

  • Yesterday at 4:54 AM

twistedtree

twistedtree

Keep us posted on how repairs go. Hopefully all can be easily corrected.  

  • Yesterday at 5:03 AM

Comodave

Moderator Emeritus

In a well built boat an aluminum tank, if properly installed, should go more than 20 years. I would carefully inspect the tank(s) and see how they are installed and if any corrosion is visible. Also look at where they are installed and see how the tank can be removed and a new one installed just in case. If the tank is buried then that can be a concern. But generally diesel tanks can be cut up in place to get it out and maybe several snaller tanks installed. It will still be pricey but doable.  

  • Yesterday at 8:51 AM
Comodave said: In a well built boat an aluminum tank, if properly installed, should go more than 20 years. I would carefully inspect the tank(s) and see how they are installed and if any corrosion is visible. Also look at where they are installed and see how the tank can be removed and a new one installed just in case. If the tank is buried then that can be a concern. But generally diesel tanks can be cut up in place to get it out and maybe several snaller tanks installed. It will still be pricey but doable. Click to expand...
  • Yesterday at 10:19 AM

DavidM

Valued Technical Contributor

Maybe this was suggested above (I didn’t read it all), check the shafts for straightness with a dial indicator. If Ok then the $2,500 price adjustment should cover all the rest except for wot rpm’s. Calibrate the tach with a photo tach and make any adjustments. If that is made then a 6BT should hit 2,800 and the 6BTA should hit 3,000. If not, squeeze another couple grand out of the seller to cover repitching to make these numbers. David  

  • Yesterday at 10:53 AM

ksanders

Congrats on the new Bayliner!  

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26th August 2024, 14:16  



Italian authorities say a downburst was the most likely cause of the sinking of the Bayesian superyacht which led to the deaths of seven people.

What is a downburst?

A downburst occurs when air plummets downward from the base of the cloud - often in conjunction with a downpour of rain - producing a powerful wind gust that blows towards the ground.
When it hits a surface, the wind spreads out, blowing outwards unpredictably. The winds associated with downbursts can reach speeds of more than 100mph (160km/h). They tend to be fairly short-lived, typically lasting a matter of minutes.
Downbursts are particularly dangerous for aviation and have been blamed for a number of air crashes over the years. However, the risk tends to be well forecast by meteorologists, helping pilots to avoid them.

Billionaire Mike Lynch's Bayesian superyacht sinks in a minute | 7 dead | What went wrong?-downburst.jpg

Thunderstorms are very common in Europe during the late summer. But these were particularly widespread, with low pressure dominating weather patterns across the Mediterranean, making conditions ripe for severe storms to develop.
Unusually warm seas may also have provided extra fuel, with the Mediterranean recording its highest sea surface temperature on record on 15 August.
Climate scientists fear higher sea temperatures caused by climate change may help to feed more violent thunderstorms in future.
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Billionaire Mike Lynch's Bayesian superyacht sinks in a minute | 7 dead | What went wrong?-flybridge.jpg

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Billionaire Mike Lynch's Bayesian superyacht sinks in a minute | 7 dead | What went wrong?-img20240808wa001101.jpeg

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Questions for Investigators Trying to Unravel Mystery of Luxury Yacht’s Sinking

The investigators searching for answers about the shipwreck, leaving seven dead, face questions about extreme weather and possible human error or problems with the yacht itself.

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Two small boats with outboard motors make their way across the water.

By Alan Yuhas

More than 180 feet long, with a mast towering about 240 feet and a keel that could be lowered for greater stability, the Bayesian luxury yacht did not, in the eyes of its maker, have the vulnerabilities of a ship that would easily sink.

“It drives me insane,” Giovanni Costantino, the chief executive of the Italian Sea Group, which in 2022 bought the company that made the ship, said after its wreck last week. “Following all the proper procedures, that boat is unsinkable.”

But the $40 million sailing yacht sank within minutes and with fatal results: seven dead, including the British technology billionaire Michael Lynch, his teenage daughter, four of Mr. Lynch’s friends and a member of the crew. Fifteen people, including the captain, escaped on a lifeboat.

Mr. Lynch had invited family, friends and part of his legal team on a cruise in the Mediterranean to celebrate his acquittal in June of fraud charges tied to the sale of his company to the tech giant Hewlett-Packard.

The Italian authorities have opened a manslaughter investigation, searching for answers from the survivors, the manufacturer and the wreck itself. They face a range of questions and possible factors.

An ‘earthquake’ in the sky?

When the Bayesian sank around 4 a.m. on Aug. 19, the waters in its area, about half a mile off the Sicilian port of Porticello, were transformed by an extremely sudden and violent storm, according to fishermen, a captain in the area and meteorologists.

But what kind of storm is still a mystery, compounded by the fact that a sailing schooner anchored nearby did not have its own disaster. Also unclear is whether the crew was aware that the Italian authorities had issued general warnings about bad weather the night before.

Karsten Börner, the captain of the nearby passenger ship, said he’d had to steady his ship during “really violent” winds . During the storm, he said, the Bayesian seemed to disappear behind his ship.

Severe lightning and strong gusts were registered by the Italian Air Force’s Center for Aerospace Meteorology and Climatology, according to Attilio Di Diodato, its director. “It was very intense and brief in duration,” he said.

The yacht, he said, had most likely been hit by a fierce downburst — a blast of powerful wind surging down during a thunderstorm. His agency put out rough-sea warnings the previous evening, alerting sailors about possible storms.

Locals have said the winds “felt like an earthquake.” A fisherman in Porticello said that he had seen a flare go off in the early-morning hours. His brother ventured to the site once the weather had calmed about 20 minutes later, he said, finding only floating cushions.

The Italian authorities have so far declined to say whether investigators had seen any structural damage to the hull or other parts of the ship.

Open hatches or doors?

The boat executive, Mr. Costantino, has argued that the Bayesian was an extremely safe vessel that could list even to 75 degrees without capsizing. His company, the Italian Sea Group, in 2022 bought the yacht’s manufacturer, Perini Navi, which launched the ship in 2008.

Mr. Costantino said that if some of the hatches on the side and in the stern, or some of the deck doors, had been open, the boat could have taken on water and sunk. Standard procedure in such storms, he said, would be to switch on the engine, lift the anchor and turn the boat into the wind, lowering the keel for extra stability, closing doors and gathering the guests in the main hall inside the deck.

At a news conference on Saturday, almost a week after the sinking, investigators said the yacht had sunk at an angle , with its stern — where the heavy engine was — having gone down first. The wreck was found lying on its right side at the bottom of a bay, about 165 feet deep.

sea trials superyachttimes

12 guests occupied the yacht’s six cabins. There were also 10 crew members.

Open hatches, doors and cabin windows could have let in water during a storm, according to the manufacturer.

sea trials superyachttimes

Open hatches, doors and

cabin windows could

have let in water

during a storm,

according to the

manufacturer.

Source: Superyacht Times, YachtCharterFleet, MarineTraffic

By Veronica Penney

Water pouring into open hatches or doors could have contributed to the sinking, experts say, but that on its own may not account for the speed at which such a large boat vanished underwater.

Asked about the hatches at the news conference, the authorities declined to comment on whether they had been found open at the wreck.

The authorities have also not specified whether the boat had been anchored, whether it was under power at the time or whether its sails had been unfurled.

A retracted keel?

The Bayesian had a keel — the fin-like structure beneath a boat that can help stabilize it — that could be retracted or extended, according to its manufacturer. On some yachts, keels can be raised to let the large vessel dock in shallower water, and extended downward to help keep a boat level.

But like the hatches, the status of the keel alone may not explain why a large ship sank with such precipitous speed. Investigators have not disclosed what divers may have seen at the wreck, aside from saying divers had faced obstacles like furnishings and electrical wiring in tight quarters. Officials want to raise the wreck to better examine it, a process that may take weeks.

Human error?

Ambrogio Cartosio, the prosecutor in charge of the case, said at the news conference that it was “plausible” crimes had been committed, but that investigators had not zeroed in on any potential suspects.

“There could be responsibilities of the captain only,” he said. “There could be responsibilities of the whole crew. There could be responsibilities of the boat makers. Or there could be responsibilities of those who were in charge of surveilling the boat.”

It remains unclear what kind of emergency training or preparation took place before the disaster, or what kind of coordination there was during it. So far, none of the surviving crew members have made a public statement about what happened the night the ship sank.

Prosecutors said they want to ask more questions of the captain and crew, who have been in a Sicilian hotel with other survivors. They said that neither alcohol nor drug tests had been performed on crew members, and that they have been allowed to leave Italy.

Prosecutors also said they were also investigating why the captain, an experienced sailor, left the sinking boat while some passengers were still on board.

Besides possible manslaughter charges, the authorities are investigating the possibility of a negligently caused shipwreck.

The bodies of five passengers were found in one cabin, on the left side of the yacht, the authorities said. The five were most likely trying to flee to the higher side of the boat and were probably sleeping when the boat started to sink, they said.

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Houthi video shows the yemeni rebels planted bombs on tanker now threatening red sea oil spill.

Associated Press

This frame grab from video released by the Ansar Allah Media Office, the media arm of Yemen's Houthi rebels, on Thursday, Aug. 29, 2024, shows explosions striking the Greek-flagged oil tanker Sounion in the Red Sea after Yemen's Houthi rebels boarded and set explosives on the tanker, which was earlier abandoned after the Houthis repeatedly attacked it, setting off blasts that put the Red Sea at risk of a major oil spill. The logo in the bottom righthand corner of the image reads in Arabic: "Yemeni War Media." (Ansar Allah Media Office via AP)

DUBAI – Yemen's Houthi rebels released footage on Thursday showing their fighters boarded and placed explosives on a Greek-flagged tanker, setting off blasts that put the Red Sea at risk of a major oil spill. The vessel was abandoned earlier, after the Houthis repeatedly attacked it.

In the video, the Iran-backed Houthis chant their motto as the bombs detonated aboard the oil tanker Sounion: “God is the greatest; death to America; death to Israel; curse the Jews; victory to Islam.”

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The blasts capped the most-serious attack in weeks by the Houthis in their campaign disrupting the $1 trillion in goods that pass through the Red Sea each year over the Israel-Hamas war in the Gaza Strip , as well as halting some aid shipments to conflict-ravaged Sudan and Yemen.

The Sounion carried some 1 million barrels of oil when the Houthis initially attacked it on Aug. 21 with small arms fire, projectiles and a drone boat. A French destroyer operating as part of the European Union's Operation Aspides rescued the Sounion’s crew of 25 Filipinos and Russians, as well as four private security personnel, after they abandoned the vessel and took them to nearby Djibouti.

The footage released Thursday shows masked Houthi fighters carrying Kalashnikov-style rifles boarding the Sounion after it was abandoned. The bridge appeared ransacked. Fighters then rigged explosives over hatches on its deck leading to the oil tankers below. At least six simultaneous blasts could be seen in the footage.

The footage, as well as comments by the Houthi's mysterious leader Abdul Malik al-Houthi, confirmed an earlier analysis by The Associated Press that the Houthis boarded and planted explosives on the Sounion. The Houthi-controlled SABA news agency described al-Houthi as saying the Sounion attack shows America "is lying in its claims regarding any deterrence of Yemeni operations supporting Palestine.”

“The effectiveness of our operations and their control of the situation is acknowledged by the enemies,” al-Houthi said.

Western countries and the United Nations have warned any oil spill from the Sounion could devastate the coral reefs and wildlife around the Red Sea. However, the EU's naval force in the region says it has yet to see any oil spill from the Sounion.

Operation Aspides “is preparing to facilitate any courses of action, in coordination with European authorities and neighboring countries, to avert a catastrophic environmental crisis," the EU mission said. “Together, we can protect the environment and maintain stability in the region.”

U.N. spokesman Stephane Dujarric commended the efforts by the international community and the U.N. special envoy for Yemen, Hans Grundberg, “to secure the immediate access to the vessel and avert an environmental catastrophe.” The Houthis have agreed to allow the operation to proceed safely, he said.

Dujarric did not offer any indication when it might start but added that the reports that "the salvage operations for the tanker can proceed with tugboats and rescue ships to access the incident area" are encouraging.

On Wednesday, the Houthis suggested they may allow the Sounion to be salvaged , though the rebels already once blocked crews trying to reach the abandoned vessel, the U.S. military said.

The U.S. State Department declined to directly comment on the video Thursday. It referred to earlier remarks in which spokesperson Matthew Miller warned “the Houthis’ continued attacks threaten to spill a million barrels of oil into the Red Sea, an amount four times the size of the Exxon Valdez disaster” in 1989 off Alaska.

This isn't the first time the Houthis have used the threat of an oil spill to their advantage. It took years of negotiations before the rebels allowed the U.N. in 2023 to remove 1 million barrels from the oil tanker Safer off the coast of Yemen , which had been used as a floating storage and offloading facility.

“Experience has shown that the group is willing to interfere with salvage efforts if they can turn the situation into a political bargaining chip,” warned Noam Raydan, a senior fellow at the Washington Institute for Near-East Policy who has studied the ongoing Houthi attacks.

The Houthis have targeted more than 80 vessels with missiles and drones since the war in Gaza started in October. They seized one vessel and sank two in the campaign that also killed four sailors. Other missiles and drones have either been intercepted by a U.S.-led coalition in the Red Sea or failed to reach their targets.

The rebels maintain that they target ships linked to Israel, the U.S. or the U.K. to force an end to Israel’s campaign against Hamas in Gaza. However, many of the ships attacked have little or no connection to the conflict, including some bound for Iran.

Meanwhile Thursday, the U.S. military's Central Command said its forces destroyed a Houthi missile system and drone.

Associated Press writer Edith M. Lederer at the United Nations contributed to this report.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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sea trials superyachttimes

Baldur's Gate 3: Gauntlet of Shar puzzle guide for BG3

  • Author: Ryan Woodrow

It’s no secret that Baldur’s Gate 3 really wants you to dive into the lore of Shar and the inner workings of the religion. Not only is it the main focus of Shadowheart’s questline , but you’ll get a very early quest called Find the Nightsong which will direct you in the direction of the Gaunlet of Shar.

If you’re expecting some cool pieces of armor then we have to disappoint, as this is a gauntlet in the sense of a series of challenges and puzzles that you must overcome. It’s an extensive quest and pretty challenging, so here is our full Gauntlet of Shar walkthrough .

Mausoleum Puzzle – BG3

Baldur's Gate 3 Lae'zel

Larian Studios

In the Mausoleum you’ll find three murals that are covered in traps. It’s best to take control of just a single party member and either disarm or maneuver around the traps. Either way, mousing over the three murals will show you they depict Moonrise Tower, General, and Grief.

To pass the puzzle, activate the button below each of them in this order:

  • Moonrise Tower

A new doorway will open for you to progress onwards.

Lantern puzzle – BG3

Baldur's Gate 3 overlooking Baldur's Gate town

This puzzle looks obtuse at first, but the solution is very simple. In each of the side rooms, there are levers and you need to pull all of them. However, naturally, there are traps everywhere, so take someone with high perception and disarming kits to do the job. There’s also a locked door in this room with a quest-giver behind it, so it’s worth bringing some Thieves' Tools.

Gauntlet of Shar trials – BG3

Baldur's Gate 3 Underdark

You’ll now come to a large room with three trials you must complete to get Umbral gems, plus a fourth gem stowed in the room to the right.

  • The Soft-Step trial
  • The Same-Self trial
  • The Faith Leap trial

You’ll also find the Silent Library here. This is an optional area and part of the Find the Nightsong quest.

Soft-Step trial – BG3

This is a stealth-focused trial where one character will need to navigate a maze of shadows to get the Umbral gem. If you have a Rogue in your party then now is their time to shine, and we recommend using an Invisibility Potion if you have one. Plus, don’t forget that you can press Shift at any time to see NPC’s cones of vision, helping you stay out of sight – check out more BG3 tips like that at that link.

Same-Self trial – BG3

This is a combat trial where your party will face shadow versions of themselves. Crucially, each party member must fight their own clone, as fighting any other will inflict a debuff. This is pretty straightforward, just be sensible with your attacks and each character should be able to take out their clone with little issue.

Faith-Leap trial – BG3

This final trial is a bit of guesswork as you’ll need to walk along some invisible platforms to reach the gem. It’s recommended that you use Lae’zel for this one, as her improved jump ability will come in handy.

As you enter the room, go over to the left-hand wall and run along it to the next platform. From there, move towards the middle platform in a stair-like pattern, edging forward a little, then heading right, then up again, then right again until you’re aligned with the middle platform and can drop down.

On that platform, move over to the back edge and stand to the right. Move forwards until you’re close enough to make a jump to the final platform.

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Mike Lynch won a dramatic 12-year legal battle over his tech company. Weeks later, he and his top lawyer are dead.

  • Mike Lynch won an unexpected jury acquittal after a dramatic 12-year legal saga.
  • HP accused him of cooking the books of his company Autonomy to make it seem worth billions more.
  • He finally won — and then he, his lawyer, and his codefendant all died within days.

Insider Today

In 2011, Mike Lynch was the toast of the tech world.

Hailed as Britain's Bill Gates, Lynch sold Autonomy, his groundbreaking data-management company, to Hewlett-Packard for $11 billion.

Shareholders and business commentators were puzzled about what HP, a hardware company, would do with Autonomy, a software company — and why the latter was worth $11 billion. HP's executives said at the time that Autonomy had the potential to transform HP and usher the Silicon Valley titan into a new generation.

None of that happened. A year after the acquisition, HP wrote down $8.8 billion of the purchase value and accused Lynch of lying about Autonomy's finances.

The claim led to a vicious decadelong series of legal disputes.

Another Autonomy executive, Sushovan Hussain, was convicted of fraud in 2018 and sentenced to five years in prison. Federal prosecutors brought criminal charges against Lynch and Stephen Chamberlain, the company's former vice president of finance.

Lynch's court battles concluded with a three-month criminal trial in San Francisco. After just two days of deliberation, jurors found Lynch and Chamberlain not guilty on all counts.

"The truth has finally prevailed," his lawyer Chris Morvillo said.

Within months, Lynch, Chamberlain, and Morvillo were all dead.

A takeover doomed from the start

Lynch, who studied neural networks for his Ph.D. at Cambridge University, spun off Autonomy from a previous company, Cambridge Neurodynamics, in 1996.

Using sophisticated algorithms, Autonomy allowed users to organize and search through large amounts of unstructured data. It was a bright spot in Britain's tech industry and was listed on the country's stock-market index.

Autonomy's clients included Oracle, Adobe, Cisco, AT&T, and HP itself. But HP's purchase of Autonomy was controversial.

The hardware company's CEO, Léo Apotheker , who had been in the position for less than a year, tried to shift the company's direction. HP had struggled to sell printers and servers as part of its traditional hardware business. Apotheker wanted to spin off HP's personal-computing division and make a big bet on moving the company into software, which had higher margins.

Analysts hated the idea. Shareholders sued. HP's value dropped by more than half. The company's board fired Apotheker within weeks of the decision to buy Autonomy, before the deal even closed.

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His successor, Meg Whitman, fired Lynch and wrote down the value of Autonomy by $8.8 billion, which indicated HP paid nearly four times what it should have. The New York Times columnist James B. Stewart floated the case that it was the worst acquisition in corporate history — even worse than AOL's ill-fated purchase of Time Warner.

In a stunning move, HP accused Lynch of fraud the following year. The company alleged he and Hussain, a former CFO, inflated Autonomy's sales figures. The FBI and the UK's Serious Fraud Office both opened investigations.

Lynch fervently denied accusations of wrongdoing. He pointed out that Autonomy was audited by Deloitte, which hadn't found issues. Lynch said HP stifled Autonomy with mismanagement and bureaucracy that pushed out employees and stymied sales.

The culture at HP, he said, was poisonous.

"It was like boarding a plane, realizing the engine is on fire, and then going up to the cockpit only to find that the pilots are having a fight," he told The Telegraph at the time .

According to The New York Times, lawyers representing shareholders in the lawsuit against HP obtained a copy of the company's own KPMG-prepared due-diligence report. The report said that Autonomy wasn't transparent enough with its finances, but Apotheker moved forward with the takeover anyway, deciding that Autonomy's potential was worth it.

A legal morass

The UK's Serious Fraud Office announced in January 2015 that it closed its investigation into Autonomy, finding insufficient evidence for legal action, though it referred some issues to the US Justice Department.

In the subsequent months, HP and Lynch sued each other in the UK. As those cases wound their way through the British court system, US prosecutors continued investigating HP's purchase of Autonomy. In 2016, they brought fraud charges against Hussain, who was found guilty in a 2018 jury trial. British regulators formally barred him from the financial industry earlier this year after he completed a five-year sentence in the US.

HP unloaded Autonomy altogether, selling parts of it in 2016 and 2017.

In November 2018, Justice Department prosecutors went directly after Lynch and Chamberlain.

Their indictment accused Lynch and Chamberlain of falsifying financial documents, lying to auditors and regulators, and suppressing the voices of people who criticized Autonomy's financial practices.

Lynch was no longer looking at civil fights over money. He was facing the prospect of up to 20 years in prison.

For years, Lynch fought extradition to the US. Powerful in British political circles — he had advised David Cameron when Cameron was prime minister and served on the boards of the BBC and the British Museum — he and his lawyers argued that his legal issues should play out in the UK, not the US. American criminal laws were unfairly stacked against him, his lawyers said.

HP's lawsuit against Lynch — still churning in the background — finally went to trial in 2019. Apotheker testified he would have abandoned the Autonomy acquisition if he had a better understanding of its finances. Lynch argued that the whole morass was orchestrated by Whitman, Apotheker's successor, who harbored political ambitions (she ran for governor in California and is currently the US ambassador to Kenya) and wanted to shift the blame for Autonomy's failures to someone else.

Robert Hildyard, the judge who oversaw the case, ruled mostly in HP's favor. In a 2022 decision that ran over 1,700 pages, he wrote that HP overpaid for Autonomy because of deceit from Lynch and Hussain. Hildyard hadn't yet decided how much they would owe in damages, but he wrote it would be "substantially less" than the $5 billion HP asked for.

When he wasn't fighting legal battles, Lynch continued to be an entrepreneur. He founded a venture-capital firm, Invoke Capital, and invested in and helped run the cybersecurity firm Darktrace, which,  Politico reported, has deep ties  to Britain's intelligence agencies.

Financial disclosures Lynch filed last year as part of his criminal case indicated he was worth about $450 million.

The criminal trial

The UK finally extradited Lynch to the US in May 2023 , where he prepared for his trial — alongside Chamberlain as a codefendant — while under house arrest in San Francisco.

Lynch had a top-shelf legal team, but after the British court loss and Hussain's conviction, the chances of an acquittal seemed bleak.

Lynch testified at the end of his three-month trial, which began in March, telling jurors he wasn't involved in day-to-day financial oversight of the company. Misunderstandings, he said, could be chalked up to the differences between British and American accounting practices.

"A lot of what we've been looking at is like peering through the door of a kitchen and seeing the sausage-making machine, and that's how it really works," he told jurors, according to The Times of London . "If you take the microscope into even the most spotless kitchen, you'd find bacteria. If it wasn't there, that'd be something very abnormal. I don't think Autonomy was any different."

Jurors believed him. In June, they declared Lynch not guilty of the 15 charges against him, clearing Chamberlain as well.

Morvillo, one of Lynch's lawyers in the trial — as well as in the preceding decade of legal disputes — praised the jury, saying it had rejected "the government's profound overreach in this case."

"This verdict closes the book on a relentless 13-year effort to pin HP's well-documented ineptitude on Dr. Lynch," Morvillo said in a joint statement with his attorney colleague Brian Heberlig. "Thankfully, the truth has finally prevailed."

In an interview with The Times of London after the trial , Lynch reflected on how, with a great burden lifted off him at the age of 59, he could remake his life.

He mourned the deaths of his brother and mother, who both died ahead of the criminal trial. He mused about using his fortune to start a British version of the Innocence Project, which prevents wrongful convictions in the US.

"Now you have a second life," he told The Times. "The question is, what do you want to do with it?"

But first, a celebration. Lynch; his wife, Angela Bacares; one of his two daughters; Morvillo and his wife, Neda; and several others went on a superyacht, the Bayesian , which was anchored outside Sicily and owned by Bacares.

Chamberlain moved back to the UK. While running near his home, a driver hit him with a car . He died in a hospital on Saturday.

On Monday, a sudden storm struck the Bayesian. The yacht capsized.

Of its 22 passengers, 15, including Bacares, were rescued.

But rescuers have pulled five bodies from the wreckage, including Morvillo's and Lynch's . A sixth remains trapped inside the boat. Lynch's daughter Hannah remains missing.

Correction: August 22, 2024 — An earlier version of this story misnamed Lynch's lawyer. His name was Chris Morvillo, not Charles Morvillo.

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  • Main content

Tech magnate missing after luxury superyacht sinks off Sicily in 'violent storm'

A British tech magnate and several other people are missing after a luxury superyacht sank near Sicily’s main city, Palermo, during a violent storm, Italian officials and sources familiar with the matter told CNBC . At least one person was killed.

Mike Lynch, who was regularly described in U.K. media as “Britain’s Bill Gates,” was not among those rescued, said the sources, who asked not to be named because of the sensitivity of the situation. They added that Angela Bacares, Lynch’s wife, had been plucked from the waters off the Italian island.

Lynch was among six people who were unaccounted for, The Associated Press quoted Salvo Cocina of Sicily’s civil protection agency as saying. “They were in the wrong place at the wrong time,” he said. Cocina also confirmed that Bacares had survived.

Italy's coast guard said in a statement that the 184-foot sailboat, named the Bayesian, sank “due to a violent storm” off Palermo at around 5 a.m. local time (11 p.m. ET) with 22 people on board. Fifteen people were rescued, and six passengers were missing, it said.

American, British and Canadian citizens were among the missing, the statement said. The coast guard said in later statement that the ship’s cook had died. It did not give the cook's nationality.  

Karsten Borner, the captain of a ship that rescued the survivors, told reporters that there was a “strong hurricane gust, and we had to start the engine to keep the ship in an angled position,” according to Reuters.

He added that they had “watched the ship behind us not to touch them and we managed to keep the ship in position.” After the storm was over, he said, “we noticed that the ship behind us was gone.”

“Fifteen people inside. Four people were injured, three heavily injured, and we brought them to our ship, he said. “Then we communicated with the coast guard, and after some time, the coast guard came and later picked up injured people.”

UK's vessel Bayesian

One of the survivors, identified as Charlotte Emsley, 35, told the Italian news agency ANSA that she had momentarily lost hold of her 1-year-old daughter, Sofia, in the water but managed to retrieve her and hold her up over the waves until a lifeboat inflated and they were pulled to safety.

“I immediately hugged her again amid the fury of the waves. I held her tight, close to me, while the sea was stormy,” she said. “Many were screaming. Luckily, the lifeboat inflated, and 11 of us managed to get on it.”

The City Council of Bagheria said in a statement that a child of that age was being treated at a children’s hospital. It said that seven adults were taken to the emergency room but that “it seems that none are in serious conditions.” 

UK businessman Mike Lynch, who was recently acquitted in the US of an $11 billion fraud, is among those missing after a superyacht sank off southern Italy, a source close to the rescue effort said on August 19, 2024.

Lynch, 59, the missing tech entrepreneur, founded the enterprise software firm Autonomy and became the target of a protracted legal battle with Hewlett-Packard after the U.S. tech giant accused him of inflating the company’s value in an $11 billion sale. Extradited from Britain to the U.S. last year to stand trial, he was acquitted of fraud after a three-month trial.

Italy’s national fire department said in a statement that “divers, a motorboat and a helicopter” had been deployed to help with the search. The wreck was at a depth of around 165 feet, the statement said.  

Divers from the Sicilian city of Sassri and Naples, a city on the Italian mainland , were “arriving on site to search inside the sunken vessel,” it said. 

Built by Italian shipbuilder Perini in 2008, the U.K.-registered Bayesian has an aluminum hull and can carry 12 guests and a crew of up to 10, according to online specialist yacht sites. Online sites list the luxury vessel for charter for up to 195,000 euros (about $215,000) a week, the AP reported.

The boat left the Sicilian port of Milazzo on Wednesday and was last tracked east of Palermo on Sunday evening, with a navigation status of “at anchor,” according to the vessel tracking app Vesselfinder.

Fabio La Bianca, 40, took a picture of the boat at around 10 p.m. local time Sunday shortly after he closed his bar in nearby Santa Flavia. “Absurd tragedy tonight. I am lost for words,” he said Monday on Facebook.

sea trials superyachttimes

Matteo Moschella is a London-based reporter for NBC News' Social Newsgathering team.

sea trials superyachttimes

Henry Austin is a senior editor for NBC News Digital based in London.

IMAGES

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  2. 118m Feadship 1010 yacht sea trials

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  3. Photo: Project 1010 sea trials

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  4. Photo: Project 1010 sea trials

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  5. Photo: Y720 yacht sea trials

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  6. Photo: Project 1010 sea trials

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VIDEO

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  8. SuperYacht Times

    1,422 likes, 12 comments - superyachttimes on June 14, 2024: " The 91.8-metre hybrid-electric Feadship superyacht Drizzle has been spotted on sea trials in the North Sea by photographer Ruben Griffioen. Also known as Feadship 1012, construction on Drizzle began in 2020, with her hull seen for the first time in 2022, when it was pulled out of the shed in Eemhaven, Rotterdam.

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