Genmar warranties still good - San Antonio Business Journal:

ezelik.wordpress.com
Tracy Carrell says the letter came after boat manufacturedr on Monday filed for Chapter 11bankruptcyg protection. Genmar owns 15 different brandof boats, which means dealers everywherwe are impacted. She says cash customers for boatd at her dealership haveremained strong. But trouble financinf in the current economy means others have been forced tohold off. “Thre boating business has been affectedx a lot likecars have,” she The petition to reorganize its debtsz was filed in U.S. Bankruptcy Court in Minneapolis where the company isheadquartered — alongb with more than 20 related subsidiaries. Genmar has betweenn 100 and 199 creditors.
It lists its assets in the rageof $10 millio n to $50 million and its liabilities betweenb $100 million and $500 million, accordingf to court documents. The largestr unsecured creditorsare Maslon, Edelman, Brand, a Minneapolis-based law firm which is owed Merchant & Gould, a law firm in is owed $155,800. The only secured creditorws are and FifthThird Bank, accordinv to a story in the Minneapolis Star Tribune. Genmatr said it has received commitment fora debtor-in-possession (DIP) financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholdefr Irwin Jacobs said sales ofthe company’e fishing boats, luxury yachts and other products startedf to decline in 2008, but worsened in receny months. The company’s sales in fiscalo 2009, which ends in June, are likely to be about $460 million, off by more than 50 percentr fromfiscal 2008. “If someon e would have said to me as recently as even one montnh ago that Genmar would someday be filing forChapter 11, I woulxd have said it was not even a remotwe possibility,” Jacobs said. Genmar had been making some strategy changes in recent announcing plans to launch a lineof less-expensive aluminum boats.
A spinoff Greenville, Pa.-based VEC and other Jacobs-related companies aren’t included in the filing. VEC is now in the businese of making giant bladesfor energy-generating windmills. Law firm Fredrikson & Byronh in Minneapolis, is representing Genmar in thebankruptcgy case.