Genmar warranties still good - Nashville Business Journal:

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Tracy Carrell says the lettee came after boat manufacturer on Monday filedc for Chapter 11bankruptcy protection. Genmafr owns 15 different brandsof boats, which meane dealers everywhere are impacted. She says cash customersx for boats at her dealershio haveremained strong. But trouble financing in the curreng economy means others have been forced tohold off. “The boating business has been affectesd a lot likecars have,” she says. The petition to reorganize its debtes was filedin U.S. Bankruptcy Court in Minneapolis — where the company is headquarterecd — along with more than 20 related subsidiaries. Genmad has between 100 and 199 creditors.
It listse its assets in the rageof $10 million to $50 millionm and its liabilities between $100 million and $500 according to court documents. The largesrt unsecured creditorsare Maslon, Edelman, 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 FiftnThird Bank, according to a story in the Minneapolids Star Tribune.
Genmar said it has received commitment fora debtor-in-possessiomn (DIP) financing proposal from both In a statement, Genmar CEO and largest shareholder Irwin Jacobs said sales of the company’xs fishing boats, luxury yachts and othefr products started to decline in 2008, but worsened in recentt months. The company’s sales in fiscal 2009, which ends in are likely to beabout $460 off by more than 50 percenr from fiscal 2008. “If someons would have said to me as recentlt as even one month ago that Genma r would someday be filing forChapter 11, I would have said it was not even a remotes possibility,” Jacobs said.
Genmar had been making some strategy changews inrecent months, announcing plans to launc a line of less-expensive aluminum A spinoff company, Greenville, Pa.-based VEC and other Jacobs-related companies aren’t included in the filing. VEC is now in the businesws of making giant bladesfor energy-generating Law firm Fredrikson & Byron in Minneapolis, is representing Genmar in the bankruptcgy case.