[DeTomaso] MSD not good...

michael@michaelshortt.com michaelsavga at gmail.com
Mon Sep 16 10:05:26 EDT 2013


Do you or does anybody else have the inside poop on what is going on?

>From what I gather from the wording of this press release, it sounds like

one or two things or a combination of both.

1) To rid itself of manufacturing operation as they  exist now and
therefore any union
contracts, benefit plans, etc. which may be weighing down the liability
side of the equation

and or

2) that future products will be made elsewhere, presumable offshore or from
a new third party supplier
( which they may actually own ).

I don't see how they can fulfill the last half of the release otherwise.

Any other thoughts out there?


Would now be the time to buy an extra 6AL box or two?


Michael Shortt



On Mon, Sep 16, 2013 at 9:44 AM, Larry - Ohio Time Corp <
larry at ohiotimecorp.com> wrote:

>
>
> 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
>
> _______________________________________________
>
> Detomaso Forum Managed by POCA
>
> DeTomaso mailing list
> DeTomaso at poca.com
> http://poca.com/mailman/listinfo/detomaso
>



-- 







Michael L. Shortt
Savannah, Georgia
www.michaelshortt.com
michael at michaelshortt.com
912-232-9390


This email is protected by the Electronic Communications Privacy
Act, 18 U.S.C. Sec. 2510-2521, is confidential and may be legally
privileged.  If you are not the intended recipient, you are hereby notified
that any retention, dissemination, distribution or copying of this
communication is strictly prohibited.  Please reply to the sender that you
have received this message in error, then delete it.  Thank you



More information about the DeTomaso mailing list