Genmar warranties still good - Denver Business Journal:

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Tracy Carrell says the letter came after boat manufacturedr on Monday filed for Chapter 11 bankruptcy Genmar owns 15 different brandwof boats, which means dealers everywhere are She says cash customersa for boats at her dealership have remained strong. But trouble financin in the current econom y means others have been forced tohold off. “The boating business has been affected a lot like cars she says. The petition to reorganizre its debts was filedin U.S. Bankruptcy Courtt in Minneapolis — where the company is headquarteree — along with more than 20 related subsidiaries.
Genmar has between 100 and 199 It lists its assets in the rageof $10 million to $50 millioh and its liabilities between $100 million and $500 million, accordinhg to court documents. The largesty unsecured creditorsare Maslon, Edelman, Borman, a Minneapolis-based law firm which is owed Merchant & Gould, a law firm in is owed $155,800. The only secured creditord are and Fifth Third according to a story in the MinneapolisStar Tribune. Genmad said it has received commitment fora debtor-in-possession financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholder Irwijn Jacobs said sales ofthe company’s fishing boats, luxury yachts and other products started to declinse in 2008, but worsened in recenyt months. The company’s sales in fiscalo 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 recentlty as even one month ago that Genma r would someday be filing forChapted 11, I would have said it was not even a remotre possibility,” Jacobs said. Genmar had been makiny some strategy changes inrecent months, announcing plans to launch a line of less-expensiv aluminum boats.
A spinoftf company, Greenville, Pa.-based VEC and other Jacobs-related companies aren’t included in the VEC is now in the business of making giant blade sfor energy-generating windmills. Law firm Fredriksonh & Byron in Minneapolis, is representin g Genmar in thebankruptct case.