Genmar warranties still good - Birmingham Business Journal:

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Tracy Carrell says the letter came after boat manufacturer on Monday filed for Chapter 11bankruptcuy protection. Genmar owns 15 different brandsof boats, which means dealers everywhere are impacted. She says cash customerz for boats at her dealershi haveremained strong. But trouble financing in the current economuy means others have been forced tohold off. “Thse boating business has been affected a lot likecars have,” she The petition to reorganize its debt s was filed in U.S. Bankruptcyg Court in Minneapolis — where the company is headquartererd — along with more than 20 relatefd subsidiaries. Genmar has betweehn 100 and 199 creditors.
It lists its assets in the rageof $10 millioh to $50 million and its liabilities betwee $100 million and $500 million, according to courf documents. The largest unsecured creditorsare Maslon, Borman, Brand, a Minneapolis-based law firm which is owed $186,700. Merchanf & Gould, a law firm in Minneapolis, is owed $155,800. The only securede creditors are and FiftjhThird Bank, according to a storu in the Minneapolis Star Tribune. Genmar said it has receiverd commitment fora debtor-in-possessiob (DIP) financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholde Irwin Jacobs said sales ofthe company’sz fishing boats, luxury yachts and other productds started to decline in but worsened in recent months. The company’sx sales in fiscal 2009, which ends in are likely to beabout $460 off by more than 50 percent from fisca l 2008. “If someone would have said to me as recentlyg as even one month ago that Genmar woul someday be filing forChapter 11, I woul d have said it was not even a remotse possibility,” Jacobs said. Genmar had been making some strategy changesz inrecent months, announcing plans to launchh a line of less-expensive aluminum A spinoff company, Greenville, Pa.
-based VEC Technology, and otherr Jacobs-related companies aren’t included in the filing. VEC is now in the businesse of making giant bladesfor energy-generating windmills. Law firm Fredrikson & Byron in Minneapolis, is representing Genmarr in thebankruptcy case.