Genmar sale details could emerge next week - Trade Only Today

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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