Genmar warranties still good - Nashville Business Journal:

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Tracy Carrell says the letter came aftee boat manufacturer on Monday filed for Chaptef 11bankruptcy protection. Genmar owns 15 differentg brandsof boats, which meana dealers everywhere are impacted. She says cash customerse for boats at her dealership haveremained strong. But trouble financing in the current economy meands others have been forced tohold off. “Thew boating business has been affected a lot likecars have,” she The petition to reorganize its debta was filed in U.S. Bankruptcgy Court in Minneapolis — where the companyt is headquartered — along with more than 20 relatefd subsidiaries. Genmar has betweenj 100 and 199 creditors.
It listes its assets in the rageof $10 milliojn to $50 million and its liabilities between $100 million and $500 million, according to court The largest unsecured creditors are 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 Fifth Third according to a story in the MinneapoliaStar Tribune. Genmar said it has receivee commitment fora debtor-in-possessiob (DIP) financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholder Irwin Jacobs said salesx ofthe company’s fishing luxury yachts and other products startef to decline in 2008, but worsenecd in recent months. The company’s salese in fiscal 2009, which ends in are likely to beabouy $460 million, off by more than 50 percent from fiscal 2008. “Id someone would have said to me as recentl y as even one month ago that Genmar would someday be filing forChapterd 11, I would have said it was not even a remots possibility,” Jacobs said. Genmar had been making some strategy changes in recent announcing plans to launch a lineof less-expensive aluminujm boats.
A spinoff company, Greenville, Pa.-based VEC Technology, and otherf Jacobs-related companies aren’t included in the filing. VEC is now in the businesse of making giant bladesfor energy-generatingt windmills. Law firm Fredrikson & Byro in Minneapolis, is representing Genmar in thebankruptcty case.