ADMINISTRATORS are today seeking a buyer for a £1.5m Southampton yacht-building company after its boss was killed in a plane crash in America.

Seastream International, based at Shamrock Quay, filed for administration following the tragic death of its owner, the wealthy entrepreneur Christopher Matthews.

Mr Matthews, 54, who funded Seastream International to the tune of £3.8m, died at the beginning of August when the aircraft he was piloting crashed in Wisconsin, USA.

His death came at a key time for the fledgling business, which employs five people.

After selling a handful of yachts, it switched focus to the luxury market and was close to finishing its first top-of-the-line £1.5m Seastream 650.

Designed by Dubois Naval Architects, the Seastream 650 is a fast, hand-built, world cruising yacht with the hull and deck made from high-strength composite foam cored construction.

But "significant cash flow difficulties" for the executors of Mr Matthews' considerable estate - his businesses included a Florida helicopter company, several dating agencies, a hedge fund portfolio and property - have forced an early sale of the company.

A buyer handing over £1.5m would effectively get the company and a nearly finished Seastream 650 for the normal price of the yacht.

Peter Whalley of Southampton-based administrators Buchanans, said: "This is clearly a tragic tale of something going wrong which the company's management could never have foreseen.

"Our first task will be to stabilise the situation and assess the options for maximising value for the creditors and the executors who are handling Mr Matthews' estate.

"Prior to our appointment, the company had already commenced steps to find buyers for both the yacht, which is presently undergoing final finishing in Falmouth, and the business assets and undertaking. We shall continue this effort."