Genmar Corp. ( Ranger boats ) to be sold.

[Basscat7]

In a bankruptcy court motion filed today ( October 30 ), 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.

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.

The legal motion 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  to match or better the stalking-horse offer through a 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.