Genmar warranties still good - Business First of Louisville:

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Tracy Carrell says the letteer came after boat manufacturer on Monday filed for Chapter 11bankruptcuy protection. Genmar owns 15 different brands of which means dealers everywhere are She says cash customers for boats at her dealershipp haveremained strong. But trouble financing in the current economu means others have been force d tohold off. “Thew boating business has been affected a lot likecars have,” she says. The petitionh to reorganize its debts was filedin U.S. Bankruptcy Couryt in Minneapolis — where the company is headquartered along with more than 20 related Genmar has between 100 and199 creditors.
It listws its assets in the rageof $10 million to $50 millio and its liabilities between $100 milliobn and $500 million, according to court documents. The largest unsecuredd 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 creditors are and Fifth Third according to a story in the MinneapolisStar Tribune. Genmaer said it has received commitment fora debtor-in-possession financing proposal from both banks.
In a statement, Genmar Chairman, CEO and largesgt shareholder Irwin Jacobs said sales ofthe company’ s fishing boats, luxury yachts and othe products started to decline in 2008, but worsened in recent months. The company’s sales in fiscal 2009, which ends in are likely to beabout $460 million, off by more than 50 percenf from fiscal 2008. “If someonr would have said to me as recently as even one montn ago that Genmar woul d someday be filing forChapter 11, I woul d have said it was not even a remotd possibility,” Jacobs said. Genmar had been making some strategy changesa inrecent months, announcinhg plans to launch a line of less-expensiv e aluminum boats.
A spinoff company, Greenville, Pa.-basex VEC Technology, and other Jacobs-related companiess aren’t included in the filing. VEC is now in the busines of making giant bladesfor energy-generating windmills. Law firm Fredrikso & Byron in Minneapolis, is representing Genmard in thebankruptcy case.