Genmar asks for third amendment to DIP financing

MINNEAPOLIS – In a court document filed Monday, Genmar Holdings Inc. and debtors involved in its bankruptcy case asked the court to approve a third amendment to its Debtor-In-Possession financing with senior lenders.

This financing is intended to help the boat building company continue to operate as it goes through the bankruptcy proceedings, Genmar Holdings LLC Chairman Irwin Jacobs suggested in an interview yesterday.

The court will hold a hearing on the Motion at 1:30 p.m. on Sept. 2 in Courtroom No. 2B of the United States Courthouse at 316 North Robert Street, Saint Paul, Minn., according to the document.

Download Genmar asks for third amendment to DIP financing

“Our whole mission is to get the banks paid off as soon as possible,” explained Jacobs. “We’re in the process of selling off non-core assets.”

Not only does Genmar’s Wellcraft factory currently have a contract on it, a Genmar factory in Oregon and other of its real estate holdings also are under contract, he stated. In addition, some of its letters of credit are being reduced.

“This will reduce our outstanding debt,” he said. “In the end, a brand or two may not end up being in the mix. We have to make sure the factories are running at the proper consolidation of capacity.”

Genmar is working to have a plan for exiting bankruptcy in place by the first of October or sooner, Jacobs added. In the meantime, he is encouraged by production increases in four of Genmar’s factories.

“The support we’re getting from our dealers and customers: It’s what I’m here for,” he said. “It’s why I enjoy coming to work today. I’m not trying to tell you business is great. We’re nowhere near capacity. But there’s activity there, and a lot of it is sold retail boats.”

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