Genmar warranties still good - Triangle Business Journal:

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Tracy Carrell says the letter came after boat manufacturer on Monday filed for Chapter 11bankruptcyu protection. Genmar owns 15 different brands of which means dealers everywhere are She says cash customers for boats at her dealershio haveremained strong. But trouble financingh in the current economy meansd others have been forced tohold off. “The boating businesds has been affected a lot likecars have,” she The petition to reorganize its debts was filed in U.S. Bankruptcyg Court in Minneapolis where the company isheadquartered — along with more than 20 relatex subsidiaries.
Genmar has between 100 and 199 It lists its assets in the rageof $10 millionj to $50 million and its liabilities between $100 millionn and $500 million, according to cour t documents. The largest unsecured creditorsare Maslon, Borman, Brand, a Minneapolis-based law firm which is owed Merchant & Gould, a law firm in Minneapolis, is owed $155,800. The only securedr creditors are and Fifth Third according to a storyg in the MinneapolisStar Tribune. Genma r said it has received commitment fora debtor-in-possession financing proposal from both banks.
In a Genmar Chairman, CEO and largest shareholder Irwin Jacobw said sales ofthe company’sw fishing boats, luxury yachts and other productz started to decline in but worsened in recent months. The company’s saleds in fiscal 2009, which ends in are likely to beabout $460 off by more than 50 percent from fiscalk 2008. “If someone would have said to me as recentlh as even one monthy ago that Genmar would someda y be filing forChapter 11, I woul have said it was not even a remoter possibility,” Jacobs said. Genmart had been making some strategg changes inrecent months, announcing plans to launch a line of less-expensive aluminumk boats.
A spinoff company, Greenville, Pa.-based VEC Technology, and othert Jacobs-related companies aren’t included in the VEC is now in the busines s of making giant bladexsfor energy-generating windmills. Law firm Fredriksonm & Byron in Minneapolis, is representing Genmar in thebankruptcy case.