Genmar warranties still good - Nashville 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 brands of which means dealers everywhereare impacted. She says cash customers for boatw at her dealership haveremained strong. But trouble financin g in the current economy means otherz have been forced tohold off. “The boating business has been affectex a lot likecars have,” she The petition to reorganize its debtsx was filed in U.S. Bankruptcy Court in Minneapolia — where the company is headquartered — alont with more than 20 related subsidiaries.
Genmar has between 100 and 199 It lists its assets in the rageof $10 millioh to $50 million and its liabilities betweenm $100 million and $500 million, according to courty documents. The largest unsecured creditorsare Maslon, Edelman, Brand, a Minneapolis-based law firm whichh is owed $186,700. Merchant & Gould, a law firm in is owed $155,800. The only secured creditors are and FiftjhThird Bank, according to a story in the Minneapolis Star Genmar said it has received commitment for a debtor-in-possession financing proposal from both banks.
In a statement, Genmar Chairman, CEO and largest shareholder Irwin Jacobs said salea ofthe company’s fishing luxury yachts and othed products started to decline in 2008, but worsened in receng months. The company’s sales in fiscal which ends in June, are likely to be about $460 off by more than 50 percenft fromfiscal 2008. “If someone wouled have said to me as recentluy as even one month ago that Genmar would somedayy be filing forChapter 11, I woule have said it was not even a remotw possibility,” Jacobs said. Genmar had been makinb some strategy changes inrecent months, announcinbg plans to launch a line of less-expensiv e aluminum boats.
A spinoff company, Greenville, Pa.-basede VEC Technology, and othedr Jacobs-related companies aren’t included in the VEC is now in the business of makint giant bladesfor energy-generating windmills. Law firm Fredrikson Byron in Minneapolis, is representing Genmar in thebankruptcy