Judge’s ruling paves way for Genmar auction

Posted on December 16, 2009

A Minnesota bankruptcy court judge approved the sales motion submitted by Genmar Holdings.

An auction is set for Jan. 7, with a court hearing set for the morning of Jan. 13 to consider final approval of the sale.

The court also approved the bidding procedure, and a breakup fee and expense reimbursement for stalking horse Project Boat Holdings, as set forth in the agreement between Genmar and Project Boat Holdings.

"The debtors have articulated good and sufficient reasons for approving the sale motion," the judge said in his order. "The process for selection of the stalking horse ... was fair and appropriate under the circumstances and is in the best interests of the debtors' estates."

Project Boat Holdings has put in a $55 million bid for Ranger, Stratos, Champion, Wellcraft, Four Winns, Glastron and Larson. The assets also include facilities in Flippin, Ark.; Cadillac, Mich.; and Murfreesboro, Tenn.

The bid does not include Carver, Marquis, Seaswirl, FinCraft, Hydra-Sports, Javelin and other brands, or real estate and production facilities in Little Falls, Minn.; Pulaski, Wis.; and other locations. The sale also does not include the ownership of approximately 93 percent of VEC Technology.

Genmar Holding's founder and former chairman and CEO Irwin Jacobs is also pursuing a purchase of at least a portion of the company's assets.

Comments

6 December, 18 2009, 10:23 AM

By Chris H

Yes, both are manufactured in Little Falls.  The boat building business is what makes Little Falls residents survive. If there will be no buyer this will ulltimatly kill Little Falls.  :(       Happy Holidays everyone.  Hopefully Irwin will not let Little Falls down.

5 December, 17 2009, 04:28 PM

By Ole Boat Builder

Last time I checked, both Larson and Glastron were being built at the Little Falls, MN plant, much of the tooling used the new VEC method of molding.

If the Little Falls, MN plant is not included in the Project Boat Holdings bid, has anyone factored in the cost and time delay to move all of this tooling to another facility, much less the start up time for training new employees in a different location?

Based upon my past experience of boat building, it would seem the cost to move alone will be several hundreds of thousands of dollars, and the time delay would stretch into 2011 model year for both Glastron and Larson.

Sounds like really buying a pig in a poke to me.

Just wondering.

4 December, 17 2009, 10:19 AM

By Long Island Dealer

Looks like no Genmar boats at the New York or Atlantic City boat shows.

Merry Christmas

3 December, 16 2009, 06:53 PM

By Big T

The sooner the better, this has already drug out too long. We (the dealers) need to get moving, they have already destroyed boat show season.

2 December, 16 2009, 03:16 PM

By Previous employee

Mr. Bill M.

Ditto........

1 December, 16 2009, 11:46 AM

By Bill M.

What a joke.

It fits with everything else happing in this polical climate.

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