Genmar bankruptcy

[Rick K of Ca]

St. Paul Business Journal
11/04/2009


Jacobs seeking to buy back GenmarMinneapolis / St. Paul Business Journal
Print Email Reprints RSS Feeds LinkedIn Share CommentsTwin Cities businessman Irwin Jacobs, who is known for scooping up bankrupt firms, is now to seeking to buy back Genmar Holdings Inc. — the Minneapolis-based boat manufacturer he once ran before its Chapter 11 bankruptcy in June.

Jacobs told the Star Tribune that he expects to be the high bidder for the company. Jacobs, who owned 40 percent of privately held Genmar’s stock at the time of bankruptcy, would end up owning 80 percent of the company. The report didn’t say how much he’s paying.

Genmar’s adviser, Houlihan Lokey Howard & Zukin Capital Inc., received 12 bids and eliminated them down to one bidder who has not been disclosed, according to bankruptcy court documents.

Besides owning most of Genmar, which makes recreational boat brands including Glastron, Larson and Ranger, Jacobs also would own most of Greenville, Pa.-based VEC Technology, which is now in the business of making giant blades for energy-generating windmills.

Jacobs has blamed Genmar’s troubles on the recession and collapse of credit markets, which hurt demand for its products.

Genmar has between 100 and 199 creditors. It lists its assets in the rage of $10 million to $50 million and liabilities between $100 million and $500 million, according to court documents.

The largest unsecured creditors are Maslon, Edelman, Borman, Brand, a Minneapolis-based law firm that is owed $186,700. Merchant & Gould, a law firm in Minneapolis, is owed $155,800.



cnewmarker@bizjournals.com

[Rick K of Ca]

bump

[bigbass111]

I still can't believe thats legal. Pay yourself LARGE amounts of money, and let your company and all other companies that sell your product go out of buisness. Then turn around and buy your company back at a fraction of its owed cost.

Thats BS.....Lets see how many of his vendors that were screwed stay a vendor with his beloved boat lines...

Hopefully karma catches up to him..

[Wolfeman]

It's the Wall Street model.
- Wolfeman