Genmar sale details could emerge next week

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Genmar president and CEO Roger Cloutier II said more details of a pending sale should be available next week.

In a letter sent to dealers this week, Cloutier said the company is “extremely focused” on the sale of the company’s business and non-core assets.

“While our intentions for completing this work were initially planned for this week, we are now necessarily targeting the middle of next week – and sooner, if possible,” Cloutier said. “I want to assure everyone there are no unusual issues or concerns, just a great deal of work to be done.”

Earlier this month, Irwin Jacobs stepped down as CEO, chairman of the board and as a director of Genmar to avoid a potential conflict of interest as he pursues a purchase of the company.

Jacobs has said he plans to be the highest bidder for Genmar’s assets. No other bidders have been named publicly.

On Nov. 4, a bankruptcy court judge approved Genmar Holdings’ motion to enter into an exclusivity and expense agreement with an unnamed potential stalking horse. This gives that unnamed bidder a 20-day exclusivity period. Also, Genmar has been authorized to reimburse this party up to $700,000 for “certain due diligence expenses under specific circumstances.”

That bidder is not affiliated with Jacobs or Genmar, the company’s chief restructuring officer Mark Sheffert, chairman and CEO of Manchester Companies, said last week.

Genmar filed June 1 for Chapter 11 bankruptcy protection.

Click here for Cloutier’s full letter.

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Comments

15 comments on “Genmar sale details could emerge next week

  1. Bill Kearns

    How do you know that the bidder has no affiliation with Genmar or is not Jacobs? Important information – should be released.

  2. BethR

    Genmar’s chief restructuring officer said last week the bidder was not affiliated with Jacobs or Genmar
    Beth Rosenberg

  3. Bill M

    I would love to see anyone other than Irwin Jacobs get this company.
    How you can stuff vendors, dealers and employees with your bad debt and decisions and then repurchase the same company for a fraction of that debt?
    The concept is morally corrupt.

  4. CB

    Thats just great. The man who put Genmar on the verge of collapse will buy it back at a heavily discounted value. Does anyone see the problem. Is Roch from BRP his partner in this. Only in America can you steal from the public and not be punnished. I know all of the dealers need help with their dead product thanks to him but you are going from one fry pan to the other.

  5. Bluedog One

    He might have stepped down but i would bet he has insider info
    His words not mine.
    “Jacobs has said he plans to be the highest bidder for Genmar’s assets. No other bidders have been named publicly.”
    He will get genmar back and the vendors will have to work with him again, Stronger Terms but what else can they do. They need to sell product.

  6. Doug Reimel

    Mr. Jacobs is the master, this is his specialty, Prepare to get schooled again.
    The MRAA offered legal counsel to all dealers and did not have enough partcipants with MONEY. Now if you don’t like the presumed outcome you, as many dealers as you can find and your attorney should file the proper motion to legally express your concerns. You may be able to affect the outcome. After all there is right, wrong, and what is legal.
    The real question is; when Genmar Again emerges from the ashes, which dealers will jump at the chance to do business with Genmar Again?
     
    Doug Reimel
     

  7. Tim

    It should be parted out and the creditors paid. If a judge lets Irwin steal this company back he’s out of his mind…Hey Irwin- Where’s all your long winded commentary now about how bad Brunswick is??? Looks to me they seem to know what they’re doing in these hard times..Not like you bankrupting your company only to try and attempt to steal it back for pennies.

  8. Paul B

    Did Irwin Jacobs create the Global Financial Crisis – NO, the banks did!
    Did Irwin Jacobs put the USA economy & other economies around the world into Recession – NO, the banks caused this!
    Did Irwin Jacobs cause the stock market to crash – NO, corporates and individuals decided to sell their stocks at reduced values!
    Did Irwin Jacobs cause consumers to stop buying boats – NO, consumers did!
    Did Irwin Jacobs cause GE or Textron to change their floorplan financing policies – NO, GE & Textron did!
    Did Irwin Jacobs cause other boat manufacturers to reduce their production so that everyone’s vendors were effected – NO, other businesses did!
    To insinuate or state in any manner that Irwin Jacobs engineered this situation so he could put his company into Chapter 11 to buy it back, or be able to put additional pressure on Vendors or Dealers makes you look and sound stupid.
    If the public process allows him to buy the business at the highest price offered then by any measure he should be the buyer. To sell it for less, to another bidder devalues everything and is plainly stupid.
    To blame Jacobs for the process, who did NOT create the process again makes you look and sound stupid.
     

  9. Judge1

    What are you saying he should not be responsible for anything.  You must be on his payroll or a dealer thats going to get back into bed with him for your own finacial greed. Good luck you will need it when he turns his back on you to.  Their are plenty of manufacturers out there that did not file bankruptcy i guess they caused it because they budgeted much better and told their dealers 18 monthes ago be conservitive.  He just misled his dealers he knew he was in trouble 18 mothes or else he had a stupid accountant.  And also should he not be held liable for the mess dealers are in with GE.  Wise up fella we are all paying for his bad judgement.

  10. Bluedog One

    All I’m saying, The system “is what it is” He should be able to bid, will he have an advantage? Yes he will. Will the process be fair? I dont know. He did not cause this, Vendors and Dealers will be hurt, he will get his company back for low buck, He is the master. more power to him, he will make good ching off this deal. It’s what he does! Right or wrong, I think anyone with the abilty would do this if they could. Its the system. play it as you see fit.

  11. MarineMan

    Irwin Jacobs truly believes that he will get away with this – the sad part is that he might.  Genmar dealers are once again left holding the well-deserved bag.  I have no sympathy for any dealer that has not learned their lesson and continues to do business with Irwin Jacobs.  In fact, its sadly entertaining.
    The marine industry can only grow and be prosperous when guys like Jacobs are gone and dealers work with companies that truly have their interests at heart.  I am a content Brunswick dealer, who, five years ago,was angry about some of the changes they made.  In retrospect I am happy that I stayed my course, as they have done a lot for me and my business through this difficult time.  They moved out the model year (a Jacobs “invention” which he never followed suit on) and have not made me take on anything I cant sell this year.  Perhaps the best thing is how they have handled the Genmar bankruptcy.  Not a word from them.  They could have continued to keep the marine industry in the dirt by slamming Genmar, but chose to act in the best interests of the industry by taking the higher moral ground. 

  12. Bystander

    Actually Genmar’s situation might be nice, because they haven’t done boats for stock without consumer orders as so many others (Sea Ray, Chaparral). Just to look how much there are unsold 2009 (and even 2008) boats at dealer’s backyards over the country. Genmar didn’t delayed model year change as so many others.
    It’s very interesting to see what will happen and who will survive and become even stronger. It’s no reason to whine or complain anyone’s business ethics. This is what we citizens wanted to be, this is our sick extreme capitalism.  

  13. Grand Man

    Bluedog,
    By using your thinking it’s okay to be in the wrong,  and not get caught. SOOoooo, we’ll just keep doing it.  Let’s praise someone who has a long history of unethical practices, and we’ll stand by and let them re-enter the markets to corrupt things again.
    The general consenous by most in the marine industry, and financial community it is the time for Jacob’s to go. He is not the savior that he thinks he is and certainly doesn’t offer a better future, only more risks for a anything he’s involved with. Ask the previous employees, Vendors, and especially the financial institutions, all who privately shudder that he actually might get the company back.
    Don’t be surprised at the bidders, who remain quite, but will try to pick apart the assets they want in their new future. We’ll have to see how deep Jacob’s pocket are, and if really deep….. why didn’t he pay his creditors????  Lots of people want to know that answer !

  14. Bluedog

    Grand Man,
    Please understand, I think Mr Jacobs is way wrong and I dont approve of him being able to do this. I think it wrong that the judge let him step down and allowed him to be a bidder.(WTF) I would love to see someone beat him. I live at Minnetonka, drive by his house every day, it would be nice to smile as I drive by knowing he lost genmar because of mis-management, That’s what happens when you file for Bankruptcy!
    I just dont think it will be fair, He will have an advantage, some how, some way, I see it happen all the time with him.
    I love my whaler and my 200 mec, I have been very happy with any issue I have had and with the responce from Brunswick, after all they are still standing,
    I love this industry and it when this happens it hurts everyone.
    I just dont think he will lose. (No Praise here) far from it.

  15. TCA

    I understand why everyone thinks Jacobs should loose this business, and he should given he is the one that let the company go this way, but who honestly believes Brunswick is a better alternative????
    Brunswick has not turned an operational profit in well over a year yet their stock is still going up.  Pump and Dump anyone?
    Brunswick’s stock looks like Enron did right before going belly-up and Jacobs appears to be the stereo-typical used car salesmen. 
    The marine industry as a whole deserves a better class of white collar criminal, and speaking of which…
    A little birdie told me that the “other” bidder was Yamaha after the Ranger boat line.
    So what is your choice, made in America by crooks or made in Japan to a cookie cutter standard?

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