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Boat Industry Meltdown [Genmar]
- Thread starter Wefings
- Start date
Oh my. I think it's the largest privately held boat manufacturer in the USA. Their "Seaswirl" brand is well thought of around San Diego, just behind Parker for offshore use and there's at least two dealers here who sell only SeaSwirl, which means a dead end for them and any other non diversified dealerships involving Genmar Holdings.
What's next? Brunswick????
Don
What's next? Brunswick????
Don
Don and Brenda
New member
I own a Striper boat, not sure what this will mean for warranty, however they filed chapter 11 not 7. Sounds like their main lender "Wells Fargo" tightened the reigns on the money. According to the company they have enough cash to pay creditors and keep going. We shall see
All manufacturers that depend on a revolving line of credit to, buy material/make/ship/floor plan/and sell. their product are in trouble... This is only one more bankruptcy in what will be a long line over the next 2 to 5 years...
The commercial ARM's for strip malls, condos, office towers, etc. that will have their five year roll over trigger pulled in 2010 and 2011 is going to be a nuclear blast...
The westernized countries - and especially the USA - have been living on credit for decades now to pay for vast social programs, wars, and on, and on, and that pile of debt is now toppling...
This is not a good time for the working man - unless he is already living the Armageddon lifestyle with no debt and the ability to grow food...
The commercial ARM's for strip malls, condos, office towers, etc. that will have their five year roll over trigger pulled in 2010 and 2011 is going to be a nuclear blast...
The westernized countries - and especially the USA - have been living on credit for decades now to pay for vast social programs, wars, and on, and on, and that pile of debt is now toppling...
This is not a good time for the working man - unless he is already living the Armageddon lifestyle with no debt and the ability to grow food...
GENMAR HOLDINGS, INC. FILES FOR CHAPTER 11 REORGANIZATION
IN THE U.S. BANKRUPTCY COURT
June 1, 2009. Minneapolis, Minnesota.
Genmar Holdings, Inc. (Genmar) announced today that it has filed for Chapter 11 reorganization protection in the U.S. Bankruptcy Court. Irwin L. Jacobs, Chairman and CEO of Genmar, stated, “I have been in the boating industry for over 30 years, and throughout those many years, I have personally experienced several of what I thought were the worst and most difficult business conditions our industry had ever gone through. However, those conditions do not even remotely resemble anything close to what has taken place in the retail and wholesale recreational boating industry over the past approximately 12 months. If someone would have said to me as recently as even one month ago that Genmar would someday be filing for Chapter 11, I would have said it was not even a remote possibility. I’ve always looked for ways to enhance Genmar’s balance sheet and felt that even though business conditions were incredibly difficult, there were alternatives available. Unfortunately, I didn’t have the necessary time to complete any alternative financing acceptable to the banks. I am sure none of that is necessarily comforting to those individuals and/or companies who are being affected by Genmar’s filing for Chapter 11. Although it’s impossible for me to try to anticipate and/or answer in this press release all of the questions that I am sure are being asked by our Genmar dealers, vendors, and employees, it is important that every interested party affected by Genmar’s situation knows that we plan on successfully reorganizing and ultimately coming out of Chapter 11 as a stronger and better company with a bright and stable future ahead in the recreational boating industry. Surely it’s going to be very difficult for most people to understand and/or anticipate the stressful days, weeks, and months ahead. I know I can speak for everyone within Genmar, including myself, that we are fully committed not only to getting through the very difficult and stressful times that are ahead of us, but we’re committed to attempting to do everything humanly possible throughout the Chapter 11 proceedings in trying to help each Genmar dealer, vendor, and employee as best we can. I have every reason to believe that GE Finance will continue their Genmar dealer floor plan financing program subject to the Court’s approval, which will take place over the next few days.”
Jacobs further stated, “We believe that Genmar will have access to sufficient cash and has current assets available to support our ongoing businesses to service and build dealer boat orders and pay our vendor suppliers on future purchases promptly. Genmar has received a commitment for Debtor-in-Possession (DIP) financing proposal from the Wells Fargo and Fifth Third banks that will be submitted for approval to the bankruptcy court in the first bankruptcy hearing scheduled to take place within the next few days. Additionally in the first court hearing, Genmar will be asking the bankruptcy court for approval to allow Genmar to pay appropriate dealer warranty and rebate claims. Genmar currently has over $100 million of current assets as
Page 2
well as substantial additional fixed assets and intangible assets that we believe will allow Genmar to come through and exit the Chapter 11 proceedings as a financially stable and strong company with a great future ahead of it in the boating industry. Further, Genmar will be submitting an overall reorganization plan for approval to the bankruptcy court as soon as possible, which will include the necessary details for all interested parties to better understand Genmar’s short and long-term plans and objectives in ultimately successfully exiting the Chapter 11 proceedings.
It’s our intention to do everything we can to protect and support our valuable Genmar brands which will ultimately allow Genmar to exit Chapter 11 and continue to be a leader in the recreational boating industry.”
About Genmar Holdings, Inc.
Genmar, with approximately 1,500 employees and five manufacturing centers, is the builder of 15 premier brands of recreational boats which include, Carver®, Champion®, FinCraft®, Four Winns®, Glastron®, Hydra-Sports®, Larson®, Marquis®, Ranger®, Scarab®, Seaswirl®, Stratos®, Triumph®, Wellcraft®, and Windsor Craft®. Genmar boats are sold worldwide through its approximately 1,100 dealers.
IN THE U.S. BANKRUPTCY COURT
June 1, 2009. Minneapolis, Minnesota.
Genmar Holdings, Inc. (Genmar) announced today that it has filed for Chapter 11 reorganization protection in the U.S. Bankruptcy Court. Irwin L. Jacobs, Chairman and CEO of Genmar, stated, “I have been in the boating industry for over 30 years, and throughout those many years, I have personally experienced several of what I thought were the worst and most difficult business conditions our industry had ever gone through. However, those conditions do not even remotely resemble anything close to what has taken place in the retail and wholesale recreational boating industry over the past approximately 12 months. If someone would have said to me as recently as even one month ago that Genmar would someday be filing for Chapter 11, I would have said it was not even a remote possibility. I’ve always looked for ways to enhance Genmar’s balance sheet and felt that even though business conditions were incredibly difficult, there were alternatives available. Unfortunately, I didn’t have the necessary time to complete any alternative financing acceptable to the banks. I am sure none of that is necessarily comforting to those individuals and/or companies who are being affected by Genmar’s filing for Chapter 11. Although it’s impossible for me to try to anticipate and/or answer in this press release all of the questions that I am sure are being asked by our Genmar dealers, vendors, and employees, it is important that every interested party affected by Genmar’s situation knows that we plan on successfully reorganizing and ultimately coming out of Chapter 11 as a stronger and better company with a bright and stable future ahead in the recreational boating industry. Surely it’s going to be very difficult for most people to understand and/or anticipate the stressful days, weeks, and months ahead. I know I can speak for everyone within Genmar, including myself, that we are fully committed not only to getting through the very difficult and stressful times that are ahead of us, but we’re committed to attempting to do everything humanly possible throughout the Chapter 11 proceedings in trying to help each Genmar dealer, vendor, and employee as best we can. I have every reason to believe that GE Finance will continue their Genmar dealer floor plan financing program subject to the Court’s approval, which will take place over the next few days.”
Jacobs further stated, “We believe that Genmar will have access to sufficient cash and has current assets available to support our ongoing businesses to service and build dealer boat orders and pay our vendor suppliers on future purchases promptly. Genmar has received a commitment for Debtor-in-Possession (DIP) financing proposal from the Wells Fargo and Fifth Third banks that will be submitted for approval to the bankruptcy court in the first bankruptcy hearing scheduled to take place within the next few days. Additionally in the first court hearing, Genmar will be asking the bankruptcy court for approval to allow Genmar to pay appropriate dealer warranty and rebate claims. Genmar currently has over $100 million of current assets as
Page 2
well as substantial additional fixed assets and intangible assets that we believe will allow Genmar to come through and exit the Chapter 11 proceedings as a financially stable and strong company with a great future ahead of it in the boating industry. Further, Genmar will be submitting an overall reorganization plan for approval to the bankruptcy court as soon as possible, which will include the necessary details for all interested parties to better understand Genmar’s short and long-term plans and objectives in ultimately successfully exiting the Chapter 11 proceedings.
It’s our intention to do everything we can to protect and support our valuable Genmar brands which will ultimately allow Genmar to exit Chapter 11 and continue to be a leader in the recreational boating industry.”
About Genmar Holdings, Inc.
Genmar, with approximately 1,500 employees and five manufacturing centers, is the builder of 15 premier brands of recreational boats which include, Carver®, Champion®, FinCraft®, Four Winns®, Glastron®, Hydra-Sports®, Larson®, Marquis®, Ranger®, Scarab®, Seaswirl®, Stratos®, Triumph®, Wellcraft®, and Windsor Craft®. Genmar boats are sold worldwide through its approximately 1,100 dealers.
patrick and linda
New member
even if genmar emerges from chapter 11 and continues to build, sell boats, who's going to trust that their new product warranty will stand the test of time?
secondly, and unrelated to this particular story, a family member, not having the same last name as i, told me today, (she's a mortgage loan officer with b of a, formerly with countywide) she's underwriting loan refi's and if the original loan was with her bank, they will use the original property appraisal, and at the same time will loan up to 105% of that old appraised value. they'll closed to loan and sell it to fanny mae or freddie mac. in addition, if the borrower has a current second mortgage it doesn't enter into the first mortgage underwriting process. got to love that stimulus money.
pat
secondly, and unrelated to this particular story, a family member, not having the same last name as i, told me today, (she's a mortgage loan officer with b of a, formerly with countywide) she's underwriting loan refi's and if the original loan was with her bank, they will use the original property appraisal, and at the same time will loan up to 105% of that old appraised value. they'll closed to loan and sell it to fanny mae or freddie mac. in addition, if the borrower has a current second mortgage it doesn't enter into the first mortgage underwriting process. got to love that stimulus money.
pat
Simplicity
New member
I knew things must have gotten bad when I saw last month's Florida Sportsman. I was shocked at how thin it was-almost no ads for boats. Alan
patrick and linda
New member
we have a boat/rv weekly publication, sold at all the local convenient stores. i used to buy it for recreational reading. great buy. cost a buck and a quarter and took a good bit of time to read. boy that has changed now, it cost more, and you could skim through it in minutes.
pat
pat
journey on
New member
Isn't Genmar the outfit that bought OMC's boat building side in ~2002? Looking at some of the brands they named above, it sounds like they didn't do any better than OMC. At least Canada bought the motor side.
Boris
Boris