Although it’s impossible for me to try to anticipate and/or answer in this press release all of the questions that I am sure are being asked by our Genmar dealers, vendors, and employees, it is important that every interested party affected by
Genmar’s situation knows that we plan on successfully reorganizing and ultimately coming out of Chapter 11 as a stronger and better company with a bright and stable future ahead in the recreational boating industry. Surely it’s going to be very difficult for most people to understand and/or anticipate the stressful days, weeks, and months ahead. I know I can speak for everyone within Genmar, including myself, that we are fully committed not only to getting through the very difficult and stressful times that are ahead of us, but we’re committed to attempting to do everything humanly possible throughout the Chapter 11 proceedings in trying to help each Genmar dealer, vendor, and employee as best we can. I have every reason to believe that GE Finance will continue their Genmar dealer floor plan financing program subject to the Court’s approval, which will take place over the next few days.”
Jacobs further stated, “We believe that Genmar will have access to sufficient cash and has current assets available to support our ongoing businesses to service and build dealer boat orders and pay our vendor suppliers on future purchases promptly. Genmar has received a commitment for Debtor-in-Possession (DIP) financing proposal from the Wells Fargo and Fifth Third banks that will be submitted for approval to the bankruptcy court in the first bankruptcy hearing scheduled to take place within the next few days. Additionally in the first court hearing, Genmar will be asking the bankruptcy court for approval to allow Genmar to pay appropriate dealer warranty and rebate claims. Genmar currently has over $100 million of current assets as well as substantial additional fixed assets and intangible assets that we believe will allow Genmar to come through and exit the Chapter 11 proceedings as a financially stable and strong company with a great future ahead of it in the boating industry. Further, Genmar will be submitting an overall reorganization plan for approval to the bankruptcy court as soon as possible, which will include the necessary details for all interested parties to better understand Genmar’s short and long-term plans and objectives in ultimately successfully exiting the Chapter 11 proceedings.
It’s our intention to do everything we can to protect and support our valuable Genmar brands which will ultimately allow Genmar to exit Chapter 11 and continue to be a leader in the recreational boating industry.”