The company which built the Warbaby Fox fast ferry has filed for bankruptcy.

The Connecticut-based Derecktor Shipyards filed for Chapter 11 bankruptcy protection last week.

A spokesman has said that the company filed for bankruptcy protection as a result of an extensive contract dispute with a customer.

The bankruptcy filing was only for the company's Bridgeport operation, and Derecktor petitioned the court to allow it to continue paying its 250 workers. Derecktor has operations in New York and Florida.

Last year Derecktor Shipyards built the Warbaby Fox ferry. The ship has a has a top speed of 33 knots per hour and can carry 350 passengers. It is powered by four diesel and four water jet engines and took six months to build and cost approximately $5 million.

The Department of Transport does not have any current contracts with the shipyard.

The Connecticut Post reported that Paul Derecktor, president of the company, said this move was to preserve the company's value while the contract dispute is worked out.

According to Derecktor's filing, it owed its 20 largest creditors more than $2.9 million. The company was still putting together its financial documents for the filing. It said it has assets and liabilities between $10 million and $50 million.