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  #1  
Old 10-31-2009, 05:26 PM
Johnnie Candle Johnnie Candle is offline
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Default Sale of Genmar

From Bass Fan:

Genmar will be sold 10/30/2009

In a bankruptcy court motion today, Genmar Holdings, Inc. requested permission to move forward with a sale of its assets and effectively abandon its effort toward a financial restructuring.

The news was announced to Genmar dealers in a letter from Genmar president and CEO Roger Cloutier.

The legal motion, filed earlier today, notes that both bankruptcy strategies refinancing/reorganization and sale of assets were pursued simultaneously, but it was determined that a sale of assets was the only tenable exit strategy.

Additionally, a stalking horse (i.e. potential buyer) has arisen. The stalking horse was not named in the motion Genmar said to do so would jeopardize the sale process but the motion did request that Genmar be allowed to enter into an exclusivity and expense agreement with the stalking horse. Such an agreement would preclude Genmar from entertaining offers or negotiating with other potential buyers.

The motion, however, includes language that would allow Genmar chairman Irwin Jacobs (pictured) to match or better the stalking-horse offer through a reorganization/refinancing or purchase offer, provided he act solely as a personal agent and not in connection with Genmar.

Jacobs was reportedly in court this week in the attempt to remove Ranger from the bankruptcy.

What isn't clear is whether the stalking horse has proposed to purchase all of Genmar's assets, or certain brands and facilities.

Rumors have run rampant through the industry the past several weeks that certain parties were interested in a purchase of Ranger Boats namely Yamaha, Evinrude and a group headed by Ranger founder Forrest Wood and current president Randy Hopper that also includes Ranger employees. There's likewise speculation that Jacobs could seek to regain ownership of the Genmar bass-boat brands, which might help buoy his stake in FLW Outdoors, which he owns, but has recently encountered difficulty in a soft economy and sponsor market.

The fate of the Stratos and Champion brands remains equally cloudy.


And some reaction to it:

Bursting Bubble
What The Ranger Sale Really Means

Saturday, October 31, 2009
by BassFan Editor-in-Chief Jon Storm

The events of this week have shown us just how tenuous major-league bass fishing truly is. It's the final pop of the decade's fishing bubble the same one that burst in NASCAR and it started with the Citgo and Anheuser-Busch pullout from BASS, followed by the Advance Auto Parts retreat.

It's somewhat fortunate for BASS that its sponsor collapse happened largely before the current recession. BASS scaled back, regrouped and moved forward primarily with support from endemic companies that don't have any choice but to participate, no matter the economic clime. And I count Toyota in BASS's endemic portfolio, because a truck and boat go hand-in-hand.

Trouble at FLW Outdoors began last year when Playtex and ConAgra walked away, and continued this year with zero or diminished involvement from Land O' Lakes, Walmart, BP and uncertainty about Castrol, Proctor & Gamble and others.

Plus, FLW's biggest endemic sponsor, Pure Fishing, walked away this week. The hope among everyone is that Cabela's can help fill that void, but it hasn't exactly been a stellar year for retailers.

In response, FLW Outdoors has cut trails, cut purses, cut staff and cut production costs.

Amidst all that concern, though, came yesterday's bombshell that Genmar will be sold probably within the next few weeks. That means Ranger's on the selling block. And remember that Ranger is the sole reason FLW Outdoors exists.

It's decidedly hard to imagine that Irwin Jacobs, who serves as both Genmar chairman and FLW Outdoors chairman, would put all his weight behind FLW Outdoors to help sell boats for a party that wrested Ranger away from him.

What if Bombardier (Evinrude) makes a play and gets Ranger? The engine manufacturer and Jacobs are currently in a spitting match that undoubtedly traces back to the Genmar bankruptcy and the significant monies owed between Evinrude, Genmar and FLW Outdoors. How would Jacobs feel about operating FLW Outdoors to sell boats for Evinrude?

After all, Jacobs knows his way around bankruptcy courts he built Genmar by purchasing bankrupt boat companies for pennies on the dollar.

The news is the same at Brunswick there's no love lost between that company and Jacobs.

Then there's the possibility that Ranger could go to a buyer who just doesn't get the whole pro-fishing thing. And would such a buyer pay off the balance of what Ranger owes FLW Outdoors (Operation Bass) listed as $3.26 million at the start of the BK? Would such a buyer honor Ranger warranties?

There's certainly a buzz in the fishing community that Ranger founder Forrest Wood, along with current Ranger management and employees, could make a play.

As it sits right now, Genmar shopped itself heavily for the past few months and no clear buyer emerged. It wasn't able to obtain the credit to bail itself out, and so the sell-off has begun.

During that shopping period, Genmar selected one party (named only as the stalking horse) as being in the best position to purchase assets. That doesn't necessarily mean the stalking horse is truly interested. There's every possibility it's simply a straw buyer meant to fend off outside parties and gain Jacobs time to buy back profit-makers like Ranger and Four Winns.

After all, Jacobs knows his way around bankruptcy courts he built Genmar by purchasing bankrupt boat companies for pennies on the dollar.

Caught in the middle are the creditors that Genmar owes everybody from engine manufacturers to media to parts suppliers to lure manufacturers to pros.

And right now there are families all around the U.S. wondering if dad will have a job next year as a pro fisherman. Much of that depends on who winds up with Ranger, and to a lesser degree Stratos and Champion.

It's tough to grasp all the ramifications of what happened this week, but through it all, one truth resonates: Don't underestimate concern for the future of FLW Outdoors with Ranger on the auction block.




At this time I (Johnnie Candle) really don't know what to think of all this. Every scenario I run through my head is not a good one. The game is changing. The one thing I will say for sure is that those that cling to the way it was before will not be happy. I do not have any answers, but I know I will be working hard to stay ahead of this curve.

Best of luck to all of you with your plans for tournament angling this year and for many more to come.
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  #2  
Old 10-31-2009, 06:37 PM
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Johnny,
Sent you a message through FB.

Juls
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  #3  
Old 11-01-2009, 08:13 AM
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Exclamation From Soundings Trade Only Today

EXTRA: Genmar moves from reorganization to sale

Posted on October 30, 2009
Written by Beth Rosenberg

Genmar Holdings is now pursuing a sales process rather than a reorganization as a means to exit from Chapter 11 bankruptcy, according to court filings.

While he couldn't discuss specifics, Genmar chairman Irwin Jacobs confirmed he is a bidder for the company.

"Unfortunately, I can't give you the information for that right now because it's not public, but I plan on being a bidder for the assets and continue the business as it is," he told Soundings Trade Only.

"I tried to do the reorganization and couldn't get the cooperation of everybody necessary with which to do it," Jacobs said. "I was going down that path and, frankly, had what I thought was, in place, a transaction to do it. But there were people who weren't cooperating with it, so I had to go in a different direction."

Jacobs said he plans to bid on "primarily the company" as a whole, though he's not sure what other potential bidders are planning.

"Only the court can be the decision maker, and that's based on who pays the most for what it is. And obviously that's what my intention is, but we'll just have to wait and see," he added.

Though he couldn't go into many specifics, Jacobs said he hopes to file papers with the court next week that will make clear his position.

In papers filed with the court, Genmar says 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, court documents say, "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 filed for Chapter 11 June 1.

- Beth Rosenberg
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Old 11-03-2009, 08:43 AM
Geebee
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Exclamation more info

The Unsecured Creditors Committee in the Genmar bankruptcy case today said it will "support a process that will result in the sale of the Genmar assets, to either one or multiple buyers."

In a court filing last week, Genmar said it was pursuing a sales process rather than a reorganization as a means to exit Chapter 11. Genmar chairman Irwin Jacobs confirmed he is a bidder for the company.

"The committee's investigation and evaluation have led it to conclude that supporting various reorganization proposals that were discussed with the committee would not be in the best interests of the unsecured creditors as a whole," the committee said in a statement.

"The committee believes that bringing this sale process to a speedy conclusion in order to meet the requirements of the early 2010 boat shows will be an important element of that effort," it added.

There are about 4,000 unsecured creditors represented by the committee, according to committee chairman Gary Potter, president of EZ Loader Boat Trailers.

Potter said it was unknown at this time how much money the unsecured creditors could expect to receive after the sale.

"It all depends on what the market value of the entities are," he told Soundings Trade Only. "The only way we know that is based on the bids that come in. A company that may have had a net worth of $10, if the bid comes in at $3 that's what it's worth, but it may come in also at $15."

The bidding process could take a month, and Potter said he believes it could be the beginning of next year before a buyer is known.

The committee said in its statement it believes it is "reasonable to expect" the sales process will result in a total sale price that exceeds the initial bid price.

Genmar filed June 1 for Chapter 11 and Jacobs had maintained he would reorganize, rather than put the company up for sale.

"I tried to do the reorganization and couldn't get the cooperation of everybody necessary with which to do it," he told Soundings Trade Only last week. "I was going down that path and, frankly, had what I thought was in place, a transaction to do it. But there were people who weren't cooperating with it, so I had to go in a different direction."

Jacobs said he plans to bid on "primarily the company" as a whole, though he's not sure what other potential bidders are planning.

Beth Rosenberg
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  #5  
Old 11-03-2009, 09:37 AM
AKuffer
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Default Cliff

Hey Jonnie this is more like a cliff. Lets hope for a cliff-hanger!
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Old 11-03-2009, 12:29 PM
Johnnie Candle Johnnie Candle is offline
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Default Hanging

I am hanging on as best I can. We need a big break in the fishing biz soon. I sure hope it gets here.

I know in my heart there are too many good people involved to let it all slip away.

We will be ok, just a few more bmps in the road than any of us would like to travel over.
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Old 11-03-2009, 01:28 PM
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I'm sure Ranger will come out of all of this just fine. Hopefully it's with Forrest Wood at the helm again and it doesn't end up in a deal like AMF/Harley-Davidson.
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Old 11-03-2009, 02:05 PM
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Default Go irwin!

Quote:
Originally Posted by Johnnie Candle View Post
I am hanging on as best I can. We need a big break in the fishing biz soon. I sure hope it gets here.

I know in my heart there are too many good people involved to let it all slip away.

We will be ok, just a few more bmps in the road than any of us would like to travel over.
You and me both, Johnnie. You have to admire Irwin. At a time when investors are melting away he is going against the flow. Ya gotta love the guy for trying! After all somewhere, somehow, someone has to make a stand. People are the best resource in any industry, or the worst liability. I have met alot of good people along the angling trail. One of these days we will have to wet a line together again.
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Old 11-03-2009, 02:22 PM
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if ya'll want some interesting reading, here is the site for the unsecured creditors to Genmar, and the schedules of what different Genmar companies owe who. http://genmarucc.typepad.com/officia...-al/schedules/

I believe that Rangers schedule is listed as Wood Manufacturing company. http://genmarucc.typepad.com/files/w...-schedules.pdf

HRG
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Old 11-03-2009, 02:35 PM
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Default More Genmar Stuff

Genmar: Textron seeks transparency 11/3/2009
Two developments in the Genmar situation today. One, the Committee of Unsecured Creditors released a statement "generally to support a process that will result in the sale of the Genmar assets, to either one or multiple buyers."

Also today, Textron Financial Corporation (TFC), believed to be the largest unsecured creditor in the bankruptcy, filed a limited objection that seeks more transparency in the sale process.

There's a sense among many that Genmar chairman Irwin Jacobs, or an associate of Jacobs, is the unidentified potential stalking horse.

Textron's objection read, in part:

"With scant justification offered, the Debtors (Genmar) seek to avoid a fundamental tenet of bankruptcy proceedings, namely transparency. Instead, the Debtors propose to envelop their sale process in a shroud of secrecy, such that this court and interested parties TFC included are to be deprived of even the most basic information, including, without limitation:


The identity of the potential stalking horse;


The extent of the potential stalking horse's interest in the Debtors' businesses or assets;


The range of values being proposed by the potential stalking horse;


The relationship between any proposed purchase price and the proposed bid enhancement (i.e., expense reimbursement); and


The nature and extent of any additional bid protections to be awarded to the potential stalking horse."

A hearing on the objection, as well as Genmar's motion to sell assets, is scheduled for 9:30 a.m. tomorrow morning (Wednesday).
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