Genmar warranties still good - Triangle Business Journal:

bengeyqafiba1640.blogspot.com
Tracy Carrell says the letter came after boat manufacturer on Mondayt filed for Chapter 11bankruptcy protection. Genmat owns 15 different brands of which means dealers everywhere are She says cash customers for boats at her dealership haveremained strong. But trouble financinh in the current economy means otherz have been forced tohold off. “The boating business has been affecteds a lot likecars have,” she says. The petitionm to reorganize its debts was filedcin U.S. Bankruptcy Court in Minneapolisx — where the company is headquartered — alonhg with more than 20 related Genmar has between 100 and199 creditors.
It list s its assets in the rageof $10 millionb to $50 million and its liabilities betweeh $100 million and $500 million, accordin to court documents. The largest unsecured creditorsxare Maslon, Edelman, Borman, Brand, a Minneapolis-basesd law firm which is owed $186,700. Merchant Gould, a law firm in Minneapolis, is owed The only secured creditors are and FifthThirdd Bank, according to a storty in the Minneapolis Star Tribune. Genmar said it has receive commitment fora debtor-in-possession (DIP) financing proposal from both banks.
In a Genmar Chairman, CEO and largesgt shareholder Irwin Jacobs said sales ofthe company’s fishing boats, luxury yachts and othe r products started to decline in 2008, but worsened in recenrt months. The company’s sales in fiscal 2009, which ends in are likely to beabouf $460 million, off by more than 50 percentg from fiscal 2008. “If someone would have said to me as recentlyt as even one month ago that Genmaer would someday be filing forChapter 11, I woulde have said it was not even a remoter possibility,” Jacobs said. Genmar had been making some strategy changews inrecent months, announcing planxs to launch a line of less-expensivse aluminum boats.
A spinoff company, Pa.-based VEC Technology, and othed Jacobs-related companies aren’t included in the VEC is now in the business of makiny giant bladesfor energy-generating windmills. Law firm Fredrikson Byron in Minneapolis, is representintg Genmar in thebankruptcy case.