Genmar Holdings, the country's second-largest boatbuilder, has filed for Chapter 11 reorganization protection in U.S. bankruptcy court.
"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," Genmar chairman and CEO Irwin Jacobs said in a statement.
"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," he added. "Unfortunately, I didn't have the necessary time to complete any of the alternative financing acceptable to the banks."
Jacobs said he plans on reorganizing and coming out of Chapter 11 "as a stronger and better company." The company will submit its overall reorganization plans for approval to the court as soon as possible.
Genmar has more than $100 million in current assets, as well as additional fixed assets and intangible assets it believes will allow the company to come through this, Jacobs said.
Minneapolis-based Genmar Holdings has approximately 1,500 employees in five manufacturing centers. The company builds 15 boat brands, including the recently introduced FinCraft, which are sold worldwide through its approximately 1,100 dealers.
Look for more on Monday's Chapter 11 filing in today's daily e-newsletter from Trade Only.