Genmar working with stalking horse bidder

Genmar working with stalking horse bidder

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“Don’t Get Left Out in the Cold!”

Cold snaps can do a lot of damage to your boat! Water left in your engine could cause the engine to freeze and crack. Carefully winterizing your boat’s engine, can save you hundreds or even thousands of dollars in repairs, not to mention the frustration of poor performance in the spring that can be a result of failing to winterize your boat.

In Texas where we have relatively comfortable winters that are sprinkled with the occassional cold spell, forecasts are not always taken seriously and this often results in a lot of damage for boat owners. Your boat may be vulnerable to a sudden freeze if proper precautions are not taken. Even a brief cold spell that lasts only a night or two can do considerable damage. In temperate states such as Texas, boat owners must winterize engines.

A few quick tips for winterizing your boat:

Stern Drives:
Drain the gear case and check for excessive moisture in the oil. This could indicate leaking seals and should be repaired. Grease all fittings and check fluid levels in hydraulic steering or lift pumps.

Outboard Engines:
Flush engine with fresh water using flush muffs or similar device attached to the raw water pickup. Disconnect fuel hose and run engine until it stops. It is important to follow a step by step process to make sure that all fuel is drained from the carburetor to prevent build-up of deposits from evaporated fuel. Use fogging oil in the cylinders to lubricate the cylinder walls and pistons. Apply water resistant grease to propeller shaft and threads. Change the gear oil in the lower unit.

Fuel:
Add a fuel stabilizer by following the instructions on the product.

Bilges:
Make sure the bilges are clean and dry.

Fresh Water System:
Completely drain the fresh water tank and hot water heater. Pump a non-toxic antifreeze into the system and turn on all the faucets including the shower and any wash-down areas until you see the antifreeze coming out. Also put non-toxic antifreeze in the water heater.

Head:
Pump out the holding tank at an approved facility. While pumping, add fresh water to the bowl and flush several times. Add antifreeze and pump through hoses, holding tank, y-valve, macerator and discharge hose.

Interior:
Once you have taken care of the system you should remove any valuables, electronics, lines, PFDs, fire extinguishers, flares, fenders, etc. Open all drawers and lockers and clean thoroughly. Turn cushions up on edge so that air is able to circulate around them or, better yet, bring them home to a climate controlled area. Open and clean the refrigerator and freezer. To keep your boat dry and mildew-free you might want to use some of the commercially available odor and moisture absorber products.


This is in no way a comprehensive and complete checklist for winterizing your boat. You should consult your owner’s manual for thorough information about winterizing your boat, or visit your local dealer for winterization services they may offer.

Jacobs resigns as head of Genmar

http://www.tradeonlytoday.com/home/500824-jacobs-resigns-as-genmar-ceo

Irwin Jacobs has stepped down as CEO, chairman of the board and as a director of Genmar Holdings to avoid a potential conflict of interest as he pursues a purchase of the company.

In a letter dated Monday, Nov. 9, company president Roger Cloutier says the change was effective Nov. 6.

"I'm keeping all of my options open, everyone will just have to wait and see what the outcome is," Jacobs told Soundings Trade Only this morning, "I've stepped aside, I resigned from the board, so that I'm free to do whatever I want to do. Otherwise it would obviously be a conflict."

"Given the circumstances surrounding Genmar as it moves forward in the sale of the company's business and non-core assets, this change in Mr. Jacobs' role was made in the best interest of all constituents," Cloutier said in his letter. "The separation will allow Mr. Jacobs to pursue his objectives relative to Genmar's asset sale process in an effective and independent manner and eliminates potential conflicts of interest."

Since Genmar filed June 1 for Chapter 11 bankruptcy protection, it has been operating under the direction of Manchester Companies, a firm that serves as the chief restructuring officer.

"At that time, the CRO was given the full authority generally vested in the chief executive officer role," Cloutier said. "An office of the president also was established, which included two representatives of Genmar and two representatives of Manchester."

Mark Sheffert, chairman and CEO of Manchester Companies, commented that Jacobs has "given a great deal to the Genmar organization and the boating industry" and stepping down as head of the company will allow the sale process to move forward in an "effective and independent manner."

Less than two weeks ago, Genmar announced its intention to pursue a sales process rather than a reorganization as a means to exit Chapter 11.

New York-based bankruptcy attorney Leonard Bellavia, of Bellavia Gentile & Associates, told Soundings Trade Only it's not unusual in this economic climate for Chapter 11 reorganizations to result in straight liquidations.

"The bankrupt companies simply do not have the income to remain current on their obligations, even without the pressure of paying old receivables and creditors, especially secured creditors, have little patience seeing the continued deterioration in the value of their collateral," he said.

Bellavia also said that it would be "uncommon" for a current officer or shareholder of the company to bid on his own company in a bankruptcy sale, as it would create a conflict of interest.

Jacobs has said he plans to be the highest bidder for Genmar's assets. No other bidders have been named publicly.

"My interest was in the company intact, for the most part, that's all I can tell you," he previously told Soundings Trade Only. "I can't give you anything more than what's out there right now."

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, Sheffert said.

Jacobs had no comment on the potential stalking horse and said he had "no concerns at all."

Genmar has identified the potential stalking horse as "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."

In an unrelated motion, the judge last week also extended the period in which Genmar has the exclusive right to file plans for reorganization through Jan. 31, 2010, and the exclusive right to obtain acceptances of such plans was extended through April 1, 2010.

Crownline Boats Back in Production!!

Crownline Boats went into production early this fall with 100 employees and is now building at the rate of 25 units per week, according to a company spokesman. CEO Kevin Riem says that he expects to be moving to 30 units a week in the near future. This is good news for a brand that closed its doors in December 2008, while the venture capital company that had bought the company a year or so before (timing is everything, boys) searched around to find a buyer.

See local TV video showing the restart of operations and interviews with staff and management:
http://www.wsiltv.com/p/videos.php?videoID=5122&newsID=8547&type=top&vidType=smMov

PRESS RELEASE -- Crownline Boats Proudly Displays Its First 2010 Model

October 14, 2009: The first Crownline boat built since the company shut down production in December of 2008 rolled off the manufacturing line as the company began production of its new 2010 models. The company re-opened its doors under new ownership with a celebratory ribbon cutting ceremony on 8/26/09. This event signifies the rebirth of one of the top boat manufacturers in the industry.

More than 550 boats have been sold since the company’s reopening, a testament to the confidence its dealer associates have in the Crownline name and the company.

Crownline’s Australian distributor, David Fraser of Melbourne, Australia was on site for the event. “Crownline gives you exceptional quality and they are serious about developing a world class product,” he said.

100 Jobs Re-Activated

Most workers say it’s reassuring to see the first boat come off the assembly line.

“Its nice to know that I’ve played a part in that boat- helped roll it from top to bottom,” said Kathy Hilliard. Kathy Hilliard recently rejoined Crownline in the lamination department. She worked there for 11 years before the plant laid off all its employees nine months ago.

“My grandkids always ask me about that, ‘What did you do on that MawMaw?’” Hilliard chuckles. “I said, I put that stuff right there on it.”

The workers are encouraged to know many more boats will follow, and they’re not the only ones.

“Just last Sunday I spoke with a customer that’s buying this boat,” explains international Crownline distributor, David Fraser. “And they’re really excited about it. And it’s great to see it here and finished and looking as good as ever.”

Kevin Riem, CEO, Says…

Kevin Riem says this is the beginning of a beautiful future with domestic and international support for the boat producer. “What this is, is really one of the first steps with re-establishing our company on a global basis.”

Riem says workers will be busy for a while. More than 550 new units are sold. Riem says production is at 25 boats a week right now and expects that to jump to more than 30 within months.