MINNEAPOLIS (AP) -- Minneapolis-based boat manufacturer Genmar Holdings Inc. filed for Chapter 11 bankruptcy protection Monday, citing decreased sales due to the credit crisis and weakened economy.
The Chapter 11 petition in U.S. Bankruptcy Court in Minnesota lists assets of $237.5 million and liabilities of $216.5 million. Irwin Jacobs, Genmar's head and founder, said the petition does not include over $400 million in intangible assets. Wells Fargo and Fifth Third bank, the only secured creditors, are owed $75 million.
"Even up until the last few weeks this is something I never even dreamt was a remote possibility," Jacobs said Monday.
He estimated Genmar's revenues for the year ending June 30 should drop by more than half to about $460 million, and Genmar will have a cash operating loss of $32 million to $35 million, compared with a cash operating profit of $9.7 million in 2008.
The boating industry has been hit by high gas prices and the recession. The National Marine Manufacturers Association has said sales of new boats fell 30 percent in 2008 and are expected to drop another 20 percent this year.