marine industry professionals
Textron files objection in Genmar case
Textron Financial Corp. and Textron Financial Canada filed an objection to Genmar Holdings' motion relating to the sale of the company, saying Genmar needs to be more open in relating details of the sale process.
Genmar's motion, which was filed last Friday, was the first public announcement that it had "abandoned any hope for a successful reorganization and instead turned their focus and attention solely toward effectuating one or more sales of their assets," Textron said in papers filed Tuesday with U.S. Bankruptcy Court in Minnesota.
In its filing, Genmar asked the court for expedited approval of an agreement with an unidentified "potential stalking horse." That agreement, among other things, would grant this party a "lock up" for approximately 20 days and a "commitment by the estates in the nature of an expense reimbursement in an amount up to $700,000."
A hearing on Genmar's motion is set for this morning.
Calling Genmar's liquidation announcement the "most significant development in these cases since their commencement approximately five months ago," Textron said Genmar is shrouding the sales process in secrecy and depriving the court and interested parties of basic information about the process.
Textron, which said it is likely the single largest unsecured creditor in the case, believes the "secret approach proposed by the debtors renders both [Textron] and the court incapable of performing an effective evaluation of the reasonableness of the relief requested."
In court documents, Genmar said it has identified a "potential stalking horse," the "party that has submitted the best offer to date from the standpoint of cash consideration and probability of consummation." It does not, however, identify that party in order to "preserve the integrity of the sale process."
Though Genmar had been looking at other options, according to court documents, the "potential stalking horse believes that pursuit of both strategies will be dilutive of management's efforts. Therefore, it has demanded that debtors enter into the exclusivity and expense agreement."
Genmar Holdings chairman Irwin Jacobs has confirmed he is a bidder for the company. No other bidders have been publicly identified.
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In agreement with J.D. Know anyone at 60 Minutes you can call to do a quick story?
But also in agreement with Waiting w/Abated Breath. We can't forget that while Irwin is playing with his money and trying to decide what his next pet project will be after he gets tired of boating (remember the ill-fated hockey team?!), there are a lot of Genmar employees as well as vendors out there who are hurting by his actions. Not that he is at all at fault for the economy turning south like it did, but he at least owed some honesty to the people who worked for him, were loyal to a Genmar company, and who are now wondering what to do for a living since the marine industry is all they've ever known. Good luck on this one, folks.
Much of this is corporate b/s and no one seems to be remembering that real people and lives are hugely affected by this situation, specifically the blue collar workers. Without them there are no boats and nothing for anyone to squabble over or make money on. Speaking on behalf of my husband who has been employed by Genmar for over 15-years; to wish this whole situation to crash and burn is to put in your vote for many families to lose a majority of their income and be forced into unemployment, lose their homes, etc. I don't think anyone needs to be reminded that we are in a struggling economy right now.....jobs are not in abundance for someone who has devoted a vast majority of their life to an industry that has failed them. Let's not wish to add to the problem.
It is time for everyone to remember or know that these workers are the backbone of America. If it takes a buy out by a 'Stalking Horse' to keep jobs, then so be it. Please don't forget the ones who have moved their lives to other states to follow a boat brand to keep their jobs, then gave up 10% of their pay and a portion of their benefits to keep the company running. These people have continued to be on again off again employed for the last year or more. Think of the hardships they are faced with b/c of what is going on. Say a prayer for them and their families, rather than using your breath to condemn them. Remember how many loyal hardworking Americans are dependent on Genmar to put food on their tables. How can anyone wish for them to lose their livelihood?
God Bless anyone who can help to keep these people employed!
In response to Back to the Futures comment about aligning with these bankrupt companies - I don't agree with your statement. The Four Winns side of Genmar has not caused this bankruptcy and the Four Winns brand didn't cause the OMC problems either. Four Winns still has many of the same people there today that were there when Four Winns sold back in 1986. They have a great staff on board and I hope to see them make it through this real soon. Four Winns today is building boats and from what I understand made money in the last quarter - even with the floorplan issues many dealers are facing.
Ranger boats is another brand with a great reputation and following.
You never know - these bankrupt brands may end up back in the hands of independent boat builders.
I will say US Marine on the Brunswick side (Bayliner, Maxum, Trophy) has been able to step up and help it's dealers out with some large rebates to clear up the old inventory and they are not an independent builder.
I am an terminated employee of a genmar company. Terminated because of the bankruptcy.
I think I speak for the majority of the terminated employees of genmar when I say that for Irwin to buy back these companies is so wrong. We would all be better served if the companies were sold to someone who cares.
Irwin cares only about himself.
DC is on the money, Irwin isn't the only owner of Genmar but he is the face that we all know. Name any others in the industry that has been as vocal on behalf of the dealers, been more accesible to the dealers and has created more marketing opportunities that all companies have tried to mimic. Textron is the one that cut and ran before we even knew what was going on. Who all screamed about that. What is NMMA or NMRA doing to help?? Who besides Irwin said lets all pull together and try to get the government to assist the marine industry like it has so many others???
I hope Irwin is the buyer for Genmar,
If Erwin has enough money to buy his company after bankrupty, maybe he should have used some of that money to invest back into the company to pay his employees, dealers and vendors and not claim bankruptcy just like all of us dealers have had to do for years to keep our doors open.
Oh thats right, why use your money when you can screw everbody else and use theirs.
I have a great new way to make money. Buy some Genmar product, don't pay for it and then claim bankruptcy and sell it all at 1/2 price to clean it up. Then reopen the business under a different name and do it all over again.
Must be the new American way.
Have a nice day
I feel sorry for the Genmar dealers. They have not been treated fairly. Irwin is only looking out for Irwin.
There are several good boat brands out there that treat their dealers as partners. Hopefully the Genmar dealers will get teamed up with boat companies they can count on to be treated fairly.
All the above is true but what happens to the dealers? I am one of largest dealers for Genmar carrying two of their brands. Sure Textron is to blame but what about Genmar. We have current inventory floorplanned with Textron that is not selling because of the bankruptcy filing. What consumer is going to buy a product with the "Bankruptcy label"? Textron has been very cooperative with us as a dealer. We are having more issues with the Genmar. They have burnt a lot of bridges with their most profitable dealers. We have been blessed thus far but the show is coming to a end. We have not been paid warranty ,rebates etc since last year. I would be in the Federal Country Club if I pulled this tactic. Come on dealers, let the courts and public know what is really going on...
How does a court allow the CEO to run the company into the ground, then buy it himself? It's like having a $100,000 mortgage, allowing it to go into foreclosure, then buying it back for $20,000, essentially making $80,000 in the process. 60-Minutes ought to be all over this story.