[DeTomaso] Holley goes belly-up!!!

shelbygt shelbygt at cfu.net
Wed Feb 13 09:54:00 EST 2008


Yikes!!!

Interesting exchanges lately on our message board.  I think some may have 
over-reacted to the guy from Minnesota's comments.  I didn't think it was 
that big of a deal??  There are some strange things going on with this 
message board these days.  It's hard to pick out what's real or someone 
playing games with us.  It seems like someone is sending messages under 
other peoples identities or maybe they aren't part of the group at all. 
Like I say, strange stuff has us all a little on edge and it's unfortunate.


----- Original Message ----- 
From: <MikeLDrew at aol.com>
To: <detomaso at realbig.com>
Sent: Wednesday, February 13, 2008 4:30 AM
Subject: [DeTomaso] Holley goes belly-up!!!


>
>
>
>
>
> Holley, Specialty Car-Parts Maker, Files Bankruptcy (Update2)
>
> By Steven Church
>
> Feb. 11 (Bloomberg) -- Holley Performance Products Inc., a century-old 
> maker
> of specialty parts for stock-car and drag- racing, filed for bankruptcy,
> faulting a late 1990s expansion for saddling the company with too much 
> debt.
>
> Closely held Holley would be taken over by noteholders owed as much as 
> $145.8
> million, according to an outline of a reorganization plan filed today in 
> U.S.
> Bankruptcy Court in Wilmington, Delaware. The company, based in Bowling
> Green, Kentucky, listed debts of $243 million and assets of $106 million 
> as of Jan.
> 28.
>
> In the years following its expansion, ``Holley did not generate sufficient
> cash flows to support the debt incurred,'' Chief Financial Officer Thomas 
> W.
> Tomlinson said in an affidavit.
>
> Holley and four of its affiliates filed for bankruptcy protection about 
> two
> years after the company renegotiated the terms on part of the 12.5 percent
> notes that were due last year. Holley's majority shareholder, funds 
> managed by
> Kohlberg & Co., quit providing the company the cash it needed to make 
> interest
> payments, according to court papers.
>
> The reorganization will cut Holley's debt by about $100 million, Tomlinson
> said in a telephone interview today.
>
> Holley has about 390 employees in Kentucky, California and Mississippi who
> make carburetor and other fuel and air-systems parts with brand names 
> including
> Hooker, FlowTech and Nitrous Oxide Systems.
>
> Nascar Sponsor
>
> ``Employees will not be affected by the bankruptcy, and the company will
> continue operations as normal,'' Tomlinson said.
>
> Holley's customers include Ford Racing and GM Performance Parts. The 
> company
> is a sponsor of the National Hot Rod Association and has a program that
> supports the National Association for Stock Car Auto Racing, (Nascar), 
> according to
> court documents.
>
> The company was founded in 1903 by brothers George and Earl Holley, who
> designed a carburetor for the Ford Model T called the Iron Pot. Later, 
> Holley built
> engine parts for planes during World War II, according to the company's 
> Web
> site.
>
> Under a deal negotiated with 70 percent of the company's second-lien
> noteholders, Holley would pay its general unsecured creditors, such as 
> trade vendors,
> in full and give almost all its equity to the noteholders, according to a
> description of the reorganization plan, called a disclosure statement, 
> filed
> today.
>
> Noteholders would get about 45.8 percent of what they're owed under the
> proposal, which requires a judge's approval.
>
> The case is: In re Holley Performance Products Inc., 08-10256, U.S.
> Bankruptcy Court, District of Delaware (Wilmington).
>
> To contact the reporters on this story: Steven Church in Wilmington,
> Delaware, at schurch3 at bloomberg.net ; Michael Bathon in Wilmington, 
> Delaware, at
> mbathon at bloomberg.net .
> Last Updated: February 11, 2008 17:16 EST
>
>
>
>
>
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