Genmar warranties still good - Puget Sound Business Journal (Seattle):

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Tracy Carrell says the letter came after boat manufacturef on Monday filed for Chapter 11bankruptcy protection. Genmar owns 15 differenr brandsof boats, which means dealerds everywhere are impacted. She says cash customerss for boats at her dealership haveremainede strong. But trouble financing in the current economy means otherzs have been forced tohold off. “The boatinhg business has been affected a lot like cars she says. The petition to reorganize its debts was filefin U.S. Bankruptcy Court in Minneapolix — where the company is headquartered along with more than 20relatefd subsidiaries.
Genmar has between 100 and 199 It lists its assets in the rageof $10 millionm to $50 million and its liabilities between $100 milliomn and $500 million, according to court documents. The largest unsecures 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 creditors are and FifthThired Bank, according to a story in the Minneapolids Star Tribune. Genmar said it has receivesd commitment fora debtor-in-possession (DIP) financing proposa l from both banks.
In a statement, Genmar Chairman, CEO and largest shareholderf Irwin Jacobs said sales ofthe company’s fishin g boats, luxury yachts and other products startec to decline in 2008, but worsened in recent The company’s sales in fiscal 2009, which ends in June, are likel to be about $460 million, off by more than 50 percent from fiscao 2008. “If someone would have said to me as recentlyh as even one month ago that Genmaer would someday be filing forChapterf 11, I would have said it was not even a remote possibility,” Jacobs said. Genmar had been making some strategh changes inrecent months, announcing plans to launch a line of less-expensivr aluminum boats.
A spinoff company, Greenville, Pa.-based VEC and other Jacobs-related companies aren’t includer in the filing. VEC is now in the busines of making giant bladesfor energy-generating windmills. Law firm Fredriksob & Byron in Minneapolis, is representing Genmar in thebankruptcu case.