[DeTomaso] MSD not good...

Larry - Ohio Time Corp larry at ohiotimecorp.com
Mon Sep 16 09:44:57 EDT 2013


 

MSD Performance, Inc. today (09/11/13) announced that to address liquidity
needs and facilitate a restructuring, the company and its U.S. subsidiaries
have filed voluntary petitions in the United States Bankruptcy Court for the
District of Delaware under Chapter 11 of the U.S. Bankruptcy Code. The
filing does not include the company's non-U.S. entities. 

MSDP has determined that the best way to preserve value for its stakeholders
is through an orderly sale of substantially all of its assets. To ensure the
most efficient sales process possible and to optimize the potential results
for all parties, the Company has decided to execute this sale process under
the protection of the U.S. Bankruptcy Code. 

Through the Chapter 11 filing, MSDP seeks to preserve continuity, to the
greatest extent possible, for its customers, employees and business partners
while it continues discussions with potential buyers to secure the highest
and best outcome for its businesses. 

"As an industry leader in the performance ignition systems market for over
40 years, MSDP brings significant value to customers, suppliers and
potential buyers based on our long-standing customer relationships, robust
product offering and proven focus on quality performance," said Ron
Turcotte, Chairman and CEO. 

"Selling operations on a going concern basis in an orderly sale through
Chapter 11 is the best way to preserve as many jobs as possible, best serve
our customers and will allow our operations to emerge from bankruptcy in a
relatively short time frame," said Turcotte. "The operations we are selling
have strong product portfolios, advanced technologies and continue to
perform well operationally." 

Under the bankruptcy sale process, the proposed transaction is subject to
the execution of a definitive asset purchase agreement, court approval and
other customary conditions. Interested parties will have an opportunity to
submit higher or better offers for MSDP's assets. 

The Company restructured its debt in 2009 following the financial downturn
as well as a series of acquisitions by prior management, which burdened it
with excessive debt. Since that time, the Company has reduced operating
costs, introduced award-winning products and accelerated marketing
initiatives. The decision to file under Chapter 11 is necessary to
facilitate this transaction, which positions MSDP to take advantage of
emerging growth opportunities. 

To fund its continuing operations MSDP has received the consent of the
lenders under its existing secured credit facility to use the Company's cash
collateral. Subject to Court approval, the Company's cash collateral will be
used for the company's normal working capital requirements. 

Employees will continue to be paid as usual, including their healthcare and
other benefits and no layoffs or facility closings are anticipated.
Customers will receive their orders as usual and the company anticipates
that there will be no changes in warranties or other customer programs
Additionally, suppliers will be paid for goods and services after the filing
date in accordance with existing terms and contracts

 

 

 

 

Larry - Cleveland




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