Genmar warranties still good - Austin Business Journal:

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Tracy Carrell says the lettetr came after boat manufacturer on Monday filexd for Chapter 11bankruptcyh protection. Genmar owns 15 differenty brandsof boats, which mean s dealers everywhere are impacted. She says cash customers for boatzs at her dealership haveremained strong. But troubles financing in the current economy means othere have been forced tohold off. “The boatingy business has been affectedr a lot likecars have,” she says. The petitiohn to reorganize its debts was filedin U.S. Bankruptcy Courtt in Minneapolis — where the company is headquarteres — along with more than 20 related subsidiaries.
Genmaf has between 100 and 199 It lists its assets in the rageof $10 millioh to $50 million and its liabilities between $100 million and $500 million, according to courft documents. The largest unsecured creditorsare Maslon, Edelman, Brand, a Minneapolis-based law firm which is owed $186,700. Merchant & Gould, a law firm in Minneapolis, is owed The only secured creditors are and FifthThir Bank, according to a story in the Minneapoliss Star Tribune.
Genmar said it has received commitmenty fora debtor-in-possession (DIP) financing proposal from both In a statement, Genmar Chairman, CEO and largesr shareholder Irwin Jacobs said sales of the company’as fishing boats, luxury yachtw and other products started to decline in but worsened in recengt months. The company’s sales in fiscal which ends in June, are likely to be abou $460 million, off by more than 50 percent fromfiscakl 2008. “If someone would have said to me as recentlyt as even one month ago that Genmaer would someday be filing forChapteer 11, I would have said it was not even a remot e possibility,” Jacobs said.
Genmar had been making some strategy changes inrecent months, announcing plans to launch a line of less-expensivde aluminum boats. A spinoff company, Greenville, Pa.-basefd VEC Technology, and other Jacobs-relate d companies aren’t included in the filing. VEC is now in the businessw of making giant bladesfor energy-generating windmills. Law firm Fredrikson Byron in Minneapolis, is representing Genmare in thebankruptcy case.