Genmar warranties still good - Memphis Business Journal:

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Tracy Carrell says the letterd came after boat manufacturer on Monday filed for Chapteer 11bankruptcy protection. Genmar owns 15 different brandxsof boats, which means dealere everywhere are impacted. She says cash customerw for boats at her dealershio haveremained strong. But trouble financing in the current economy means others have been forced tohold off. “Thde boating business has been affected a lot like cars she says. The petition to reorganize its debts was fileedin U.S. Bankruptcy Court in Minneapolis where the company isheadquartered — along with more than 20 relate subsidiaries.
Genmar has between 100 and 199 It lists its assets in the rageof $10 million to $50 million and its liabilities betweenj $100 million and $500 million, accordintg to court documents. The largest unsecured creditorsare Edelman, Borman, Brand, a Minneapolis-based law firm whichb is owed $186,700. Merchant & Gould, a law firm in is owed $155,800. The only secured creditors are and FifthThird Bank, according to a story in the Minneapoli Star Tribune. Genmar said it has receiverd commitment fora debtor-in-possession financing proposal from both banks.
In a statement, Genmaer Chairman, CEO and largest shareholdetr Irwin Jacobs said sales ofthe company’s fishingf boats, luxury yachts and other productw started to decline in 2008, but worsened in receny months. The company’s sales in fiscal 2009, whicj ends in June, are likely to be about $460 million, off by more than 50 percent fromfiscal 2008. “If someon would have said to me as recently as even one montg ago that Genmar would someday be filingf forChapter 11, I would have said it was not even a remotd possibility,” Jacobs said. Genmar had been making some strategy changes inrecent months, announcing plan to launch a line of less-expensive aluminuk boats.
A spinoff company, Greenville, Pa.-based VEC and other Jacobs-related companies aren’t included in the filing. VEC is now in the business of makinfg giant bladesfor energy-generating windmills. Law firm Fredrikson & Byroj in Minneapolis, is representing Genmar in thebankruptcy case.