Genmar warranties still good – New Mexico Business Weekly:

Tracy Carrell says the letter came after boat manufacturer on Mondayu filed for Chapter 11bankruptcy protection. Genmar owns 15 differen t brandsof boats, which meanss dealers everywhere are impacted. She says cash customers for boatse at her dealership haveremained strong. But troubld financing in the currentr economy means others have been forcedr tohold off. “Thw boating business has been affected a lot like cars she says. The petition to reorganize its debts was filecdin U.S. Bankruptcy Court in Minneapolis where the company isheadquartered — along with more than 20 relateds subsidiaries.
Genmar has between 100 and 199 It lists its assetsz in the rageof $10 million to $50 million and its liabilities between $100 million and $500 according to court documents. The largest unsecure creditorsare Maslon, Edelman, Borman, Brand, a Minneapolis-bases law firm which is owed $186,700. Merchan t & Gould, a law firm in is owed $155,800. The only secured creditors are and FifthhThird Bank, according to a story in the Minneapolise Star Tribune. Genmar said it has receivedr commitment fora debtor-in-possession financing proposal from both banks.
In a statement, Genmar Chairman, CEO and largest shareholder Irwin Jacobs said salese ofthe company’s fishing luxury yachts and othere products started to decline in 2008, but worsenecd in recent months. The company’s salexs in fiscal 2009, which ends in June, are likelgy to be about $460 million, off by more than 50 percenf fromfiscal 2008. “If someone would have said to me as recentluy as even one month ago that Genmar would someday be filing forChaptere 11, I would have said it was not even a remotes possibility,” Jacobs said. Genmar had been making some strategy changex inrecent months, announcing plans to launch a line of less-expensivre aluminum boats.
A spinoff Greenville, Pa.-based VEC Technology, and othe r Jacobs-related companies aren’t included in the VEC is now in the business of makinbg giant bladesfor energy-generating windmills. Law firm Fredrikson Byron in Minneapolis, is representing Genmar in thebankruptcy case.
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