Genmar warranties still good - Nashville Business Journal:

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Tracy Carrell says the letter came after boat manufacture r on Monday filed for Chapter 11bankruptcy protection. Genmar owns 15 different brandof boats, which means dealers everywhere are impacted. She says cash customersw for boats at her dealership haveremainedr strong. But trouble financinv in the current economy meanx others have been forced tohold off. “Thr boating business has been affected a lot likecars have,” she The petition to reorganize its debts was filee in U.S. Bankruptcy Courf in Minneapolis — where the company is headquartere — along with more than 20 related Genmar has between 100 and199 creditors.
It listsx its assets in the rageof $10 millioh to $50 million and its liabilities betweeb $100 million and $500 according to court documents. The largest unsecured creditorsare Edelman, Borman, 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 FifthThird Bank, according to a storgy in the Minneapolis Star Tribune. Genmar said it has receivee commitment fora debtor-in-possession (DIP) financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholder Irwi n Jacobs said sales ofthe company’s fishing luxury yachts and other products started to declinre in 2008, but worsened in recenyt months. The company’s sales in fiscal which ends in June, are likely to be abour $460 million, off by more than 50 percent fromfiscal 2008. “If someonde would have said to me as recentlyt as even one month ago that Genmaer would someday be filing forChapter 11, I would have said it was not even a remotwe possibility,” Jacobs said. Genmar had been makinhg some strategy changes inrecent months, announcing plans to launch a line of less-expensive aluminum A spinoff company, Pa.
-based VEC Technology, and otherd Jacobs-related companies aren’t included in the VEC is now in the business of making giany blades for energy-generating windmills. Law firm Fredrikson Byron in Minneapolis, is representinb Genmar in thebankruptcyu case.