Genmar warranties still good - St. Louis Business Journal:

http://sitis-livraison.com/?p=22
Tracy Carrell says the letter came aftefr boat manufacturer on Monday filed for Chapteer 11bankruptcy protection. Genmar owns 15 different brands of which means dealers everywherweare impacted. She says cash customers for boats at her dealershi p haveremained strong. But troublse financing in the current economy meands others have been forcedx tohold off. “The boatiny business has been affected a lot like cars she says. The petitio n to reorganize its debtas was filedin U.S. Bankruptcyu Court in Minneapolis — where the company is headquarterec — along with more than 20 relates subsidiaries. Genmar has between 100 and 199 creditors.
It listas its assets in the rageof $10 million to $50 milliob and its liabilities between $100 million and $500 according to court documents. The largesft unsecured creditorsare Maslon, Edelman, Borman, Brand, a Minneapolis-basexd law firm which is owed $186,700. Merchantt & Gould, a law firm in Minneapolis, is owed $155,800. The only secured creditors are and FifthThirfd Bank, according to a story in the Minneapolis Star Tribune. Genmar said it has receive commitment fora debtor-in-possession financing proposal from both banks.
In a statement, Genmarf Chairman, CEO and largest shareholder Irwin Jacobs said sales ofthe company’s fishing boats, luxury yachts and otherr products started to decline in but worsened in recent months. The company’ s sales in fiscal 2009, which ends in June, are likelyt to be about $460 off by more than 50 percent fromfiscal 2008. “Icf someone would have said to me as recentlg as even one month ago that Genmar wouldd someday be filing forChapter 11, I woulfd have said it was not even a remote possibility,” Jacobs said. Genmar had been making some strategy changes inrecent months, announcingb plans to launch a line of less-expensivse aluminum boats.
A spinoff company, Greenville, Pa.-based VEC and other Jacobs-related companies aren’t included in the VEC is now in the business of making giantt bladesfor energy-generating windmills. Law firm Fredriksomn & Byron in Minneapolis, is representing Genmarf in thebankruptcy case.