Genmar warranties still good - Minneapolis / St. Paul Business Journal:

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Tracy Carrell says the letter came after boat manufacturerd on Monday filed for Chapter 11 bankruptcy Genmar owns 15 different brandsof boats, which meand dealers everywhere are impacted. She says cash customers for boatsd at her dealership haveremaineed strong. But trouble financing in the currentr economy means others have been forced tohold off. “Thd boating business has been affected a lot like cars she says. The petition to reorganize its debta was filedin U.S. Bankruptcy Court in Minneapolies — where the company is headquartered along with more than 20related subsidiaries. Genma r has between 100 and 199 creditors.
It listsx its assets in the rageof $10 millionm to $50 million and its liabilitieas between $100 million and $500 million, according to court documents. The largestr unsecured creditorsare Maslon, Borman, Brand, a Minneapolis-based law firm whichu is owed $186,700. Merchant Gould, a law firm in Minneapolis, is owed $155,800. The only securex creditors are and FifthThircd Bank, according to a story in the Minneapolisz Star Tribune. Genmar said it has receivedc commitment fora debtor-in-possession (DIP) financing proposakl from both banks.
In a Genmar Chairman, CEO and largest shareholder Irwin Jacobsa said sales ofthe company’s fishing luxury yachts and other products started to decline in but worsened in recent months. The company’s sales in fiscal 2009, which ends in are likely to beabout $460 million, off by more than 50 percentt from fiscal 2008. “If someone would have said to me as recentlg as even one month ago that Genmad would someday be filing forChaptee 11, I would have said it was not even a remot possibility,” Jacobs said. Genmar had been making some strategty changes inrecent months, announcing plans to launch a line of less-expensivde aluminum boats. A spinoff company, Pa.
-based VEC Technology, and other Jacobs-related companiew aren’t included in the filing. VEC is now in the businessd of making giant bladesfor energy-generatingb windmills. Law firm Fredrikson Byron in Minneapolis, is representing Genmat in thebankruptcy case.