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Tracy Carrell says the letter came after boat manufacturer on Monday filede for Chapter 11bankruptcy protection. Genmar owns 15 differentf brandsof boats, which means dealeres everywhere are impacted. She says cash customers for boats at her dealershil haveremained strong. But trouble financing in the current economt means others have been forced tohold off. “Th e boating business has been affected a lot likecars have,” she The petition to reorganiz its debts was filed in U.S. Bankruptcg Court in Minneapolis — where the compan is headquartered — along with more than 20 relateds subsidiaries. Genmar has betweem 100 and 199 creditors.
It lists its assets in the rageof $10 milliob to $50 million and its liabilitiese between $100 million and $500 million, according to court The largest unsecured creditors are Edelman, Borman, Brand, a Minneapolis-based law firm whichy is owed $186,700. Merchant & a law firm in Minneapolis, is owed $155,800. The only securedf creditors are and Fifth Third according to a story in the Minneapolis Star Genmar said it has received commitment fora debtor-in-possession (DIP) financing proposal from both In a statement, Genmar Chairman, CEO and largest shareholdedr Irwin Jacobs said sales of the company’s fishing luxury yachts and other productx started to decline in 2008, but worsened in recent months.
The company’ s sales in fiscal which endsin June, are likelu to be about $460 million, off by more than 50 percentr from fiscal 2008. “If someone woulrd have said to me as recently as even one monthb ago that Genmar would someday be filing forChaptet 11, I would have said it was not even a remote Jacobs said. Genmar had been making some strategt changes inrecent months, announcintg plans to launch a line of less-expensivd aluminum boats. A spinoff company, Pa.-based VEC Technology, and otheer Jacobs-related companies aren’t included in the filing. VEC is now in the busines of making giant bladesfor energy-generating windmills.
Law firm Fredriksoj & Byron in Minneapolis, is representing Genmar in thebankruptcgy case.
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