This should be interesting.
James

http://www.portfolio.com/news-markets/national-news/ap/2008/02/11/holley-performance-files-for-ch-11

What's wrong w/ paying money back that you owe??

I have to............ And at FULL value...

How much money does Holley's CEO and Board make, counting EVERYTHING they pull outta the Corp????

Offy still around?? Will Vic be next once he figure's out how ta turn a buck before he dies???

I guess time ill tell if it survives or not.

Wonder what will happen to all the product lines they bought up like Weiand, B&M, Lunati's already been spun off, what's the rest of them??

pdq67

$137 mill short on their debt. Hummmm I wonder if there is going to be a foreclosure auction?

http://www.bloomberg.com/apps/news?pid=20601103&sid=a5ZlErkZqqfE&refer=us

Hopefully they'll be able to pull out of this.
BillL

My bet is just an elimination of debt, then back to buisness as usual.

probably a good time to buy stock :)

Oh MAN ....... I got to go buy a couple case's of Power valves if Holleys going under ;)

My bet is just an elimination of debt, then back to buisness as usual.

probably a good time to buy stock :)

It's a privately held company. No stock to purchase :)

I keep seeing more and more companies that tried to swallow up a bunch of companies and then end up with huge amounts of debt and lack of ability to integrate the purchased companies. The customers never saw any benefit to the consolidation of the companies that Holley purchased. I'm sure the CEO and the Board will remain the same. They drag the company into the junk and still keep their jobs. Must be nice, huh?

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@bloomberg.net ; Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net .

Last Updated: February 11, 2008 17:16 EST

"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."

Sounds like the note holders were not willing refinance at current rates. So instead they will only get 48% of the note value. Does anyone know if Holley was doing manfolds, and igintion products for others or just their own brands.

My bet is just an elimination of debt, then back to buisness as usual.

probably a good time to buy stock :)

Dead on with a zero....

The future is good and I am looking forward to it.

Holley isn't "bankrupt". They filed with a plan contributed by all those involved (knowingly) and the future monetary situation is very good.

Everyone on this forum keeps buying that Proform junk and look what is happening.

Every Proform buyer is ruining our hobby as fast as they can.:mad::(


Keep buying Proform!!!!:mad:

Proform buyers are going to put 390 Americans out of work, good job you guys!!!

Hate to say it...........but Jay maybe right this time

& Jay is never right

probably a good time to buy stock :)

:noway:

Absolute worst time to buy stock is after the filing and before the ruling. You should take the money and buy beer in returnable bottles, drink the beer, then return the bottles. Your investment will pay more than the Holley stock.

Hate to say it...........but Jay maybe right this time

& Jay is never right
Thanks Dan.:thumbsup::D

go Cowboys, Americas team.

:noway:

Absolute worst time to buy stock is after the filing and before the ruling. You should take the money and buy beer in returnable bottles, drink the beer, then return the bottles. Your investment will pay more than the Holley stock.

:D

:noway:

Absolute worst time to buy stock is after the filing and before the ruling. You should take the money and buy beer in returnable bottles, drink the beer, then return the bottles. Your investment will pay more than the Holley stock.


I will bet you a case of those unopened returnables that Holley Stock will not go down after this. :beers:

I will bet you a case of those unopened returnables that Holley Stock will not go down after this. :beers:

It will eventually go down to zero, since the company will be recapitalized and the new stock given to the bond holders. What this means is that any stock owned by shareholders will be voided. Essentially during a bankruptcy, the judge cancels the shares owned by the individual shareholders, issues new stock and awards it to the major bondholders.

Buy that beer, you will be much better off.

Hello guys, my name is Shane Weckerly and I am the Director of Product Management at Holley. I know the “bankruptcy” word sounds bad, but Holley is fine. Please read the official press release below and then our further comments below that.

BOWLING GREEN, KENTUCKY, February 11, 2008 - Holley Performance Products Inc. (the “Company”) announced today that its Owner/Investors have overwhelmingly approved a plan to dramatically enhance the Company’s capital structure by converting a majority of the Company’s debt into equity.

Thomas W. Tomlinson, the Company’s Chief Financial Officer, said today that “This is a prudent financial move on the part of our Owner/Investors – it tremendously strengthens our Company’s financial position and provides substantial flexibility to invest in our future. This investment will allow the Company to realize its full growth potential and will maximize the value we can return to our investors. The actual conversion of debt into equity will be accomplished through a “Prepackaged” bankruptcy filing that will cancel-out the old capital structure and formally establish the new one. Customers, suppliers, and employees will not be affected.” Mr. Tomlinson emphasized that, “It will be “business-as-usual” at Holley throughout the restructuring process which we expect to be completed in as few as 45 days.”

James D. Wiggins, the Company’s Chief Executive Officer, went on to say that “We are very pleased with the transformation that has taken place here at Holley over the last several years. Today Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities, and diversified revenue sources. We have established a good track record of profitability and growth in enterprise value. This restructuring represents the culmination of tremendous effort on the part of the team at Holley and we are excited to share news of this successful program with you.”

Holley is a leader in the performance engine market, and is used throughout the world in racing, street, marine, and powersports. Holley’s family of companies includes the leading brands in the performance market including: Holley, Weiand, Hooker, FlowTech, Earl’s, and NOS.

So, what does this mean to you, the racer/enthusiast/consumer? It means that Holley will be a much healthier company and able to bring you better products, technology and support. This can now be done because we won’t be under the same financial constraints of the last few years.

Essentially, what has happened is that the original investment group will transfer ownership to the second tier of investors who were a minority owner. As a result, the debt we now owe is significantly less and puts us in a better position for the future.

This was intentionally structured this way so our vendors, employees and consumers wouldn’t be impaired in any way. It will be business as usual:
• Product will be available as always with no interruption in supply
• Race contingency and event sponsorship programs will continue as planned
• Technical service support via phone, e-mail and at track is unchanged
• All product warranty systems are continuing as normal
• New product development is ongoing and we expect to release several exciting new programs throughout the year and at SEMA/PRI.


Of course, if you want to go ahead and stock up on our parts, we would love that too!

It will eventually go down to zero, since the company will be recapitalized and the new stock given to the bond holders. What this means is that any stock owned by shareholders will be voided. Essentially during a bankruptcy, the judge cancels the shares owned by the individual shareholders, issues new stock and awards it to the major bondholders.

Buy that beer, you will be much better off.

No need to worry about Holley stock, you can't buy any since it's a privately held corporation :D

No need to worry about Holley stock, you can't buy any since it's a privately held corporation :D

Well there ya go. No stock to cancel :) Now we get to buy beer anyway.

Thanks Shane for the clarification.

Now we get to buy beer anyway.

Heck yeah, anytime is good time to beer!

I think in one of the links on page one or in the other thread started on this Holley BK, said that an investor quit injecting cash into the company, which resulted the company not being able to cover the interest expense on debt. The company may have been profitably, but obvisiously not profitable enough to cover its debt. Sounds like this BK was an easy way to transfer the debt to the minority owners?? I guess the good thing is the company isn't going to China :cool:

Holley has priced themself right out of business if you ask me. Thats my 2 cents. Anybody else feel the same...?

How can I think about going belly up and convert my debt to equity so's I can make a buck off it??

Please, will the CPA's explain it to me!

I don't understand this at all unless I'm being lied to???

pdq67

Paul,
You aren't being lied too....

Holley has priced themself right out of business if you ask me. Thats my 2 cents. Anybody else feel the same...?

Explain in detail how they priced themselves out of business.:confused:

Explain in detail how they priced themselves out of business.:confused:

I know everythig has increased over the years, labor, materials ect. But the holley has never changed its still the same 3310 as 30+ years ago. Why do they cost 260.00 to 280.00 bucks. I paid 68.00 for a new one back when. Were no better off now but they cost more. It was a simple carb back then its still a simple carb now. They have not changed nothing...Im rambling now i guess. Ill shut up now.

Please, will the CPA's explain it to me!

I don't understand this at all unless I'm being lied to???

pdq67

Paul ....... you need to pay your CPA more :)
that way he'll LIE to the IRS & YOU :thumbsup:

What's wrong w/ paying money back that you owe??

I have to............ And at FULL value...

How much money does Holley's CEO and Board make, counting EVERYTHING they pull outta the Corp????

Offy still around?? Will Vic be next once he figure's out how ta turn a buck before he dies???

I guess time ill tell if it survives or not.

Wonder what will happen to all the product lines they bought up like Weiand, B&M, Lunati's already been spun off, what's the rest of them??

pdq67

Maybe you can shed some light Paul, I love my Holleys, but I seem to go through more needle and seats then I ever did in the 70s. It does seem to be better since I re-built them both, however, I bought the darn things brand new only two years ago. Two Zinc (shiny finish) 650 Double Pumpers are not cheap. :(

I know everythig has increased over the years, labor, materials ect. But the holley has never changed its still the same 3310 as 30+ years ago. Why do they cost 260.00 to 280.00 bucks. I paid 68.00 for a new one back when. Were no better off now but they cost more. It was a simple carb back then its still a simple carb now. They have not changed nothing...Im rambling now i guess. Ill shut up now.
how much did a gallon of gas cost "back when"? or how about a gallon of milk? loaf of bread? new car? intake manifold? what was the minimum wage? what was the average wage? how much was a decent house?

I know everythig has increased over the years, labor, materials ect. But the holley has never changed its still the same 3310 as 30+ years ago. Why do they cost 260.00 to 280.00 bucks. I paid 68.00 for a new one back when. Were no better off now but they cost more. It was a simple carb back then its still a simple carb now. They have not changed nothing...Im rambling now i guess. Ill shut up now.


http://www.westegg.com/inflation/

And as usual, a corporation is sticking it to somebody. All I heard from Shane is "blah, blah, blah, we own people money and we don't want to pay it back, so we're going to stick it to somebody".
At the top of his post he says that Holley is "fine". Well if Holley is so fine then why don't you pay the people you owe money to instead of sticking it to them? Sorry, I forgot, it's a corporation and sticking it to people is business as usual. It's all about profit. Maybe after the bankruptcy, Holley will be able to afford to not use cheap parts on their carbs. But I doubt it will change anything other than their profit margin. Typical.

:cool:

Andrew

And as usual, a corporation is sticking it to somebody. All I heard from Shane is "blah, blah, blah, we own people money and we don't want to pay it back, so we're going to stick it to somebody".
At the top of his post he says that Holley is "fine". Well if Holley is so fine then why don't you pay the people you owe money to instead of sticking it to them? Sorry, I forgot, it's a corporation and sticking it to people is business as usual. It's all about profit. Maybe after the bankruptcy, Holley will be able to afford to not use cheap parts on their carbs. But I doubt it will change anything other than their profit margin. Typical.


All the vendors are getting paid, they aren't getting "stuck". The people that have the debt are the ones themselves that arranged the agreement and are taking any financial burdens or risks.

I know a fair amount about the financials of that company as well as profits on about every PN. The industry overall for every company is in rough shape right now for everyone. Nobody making performance parts for 30+ year old cars is getting rich right now.

We should feel lucky that Holley, Edelbrock, and many others make parts for our hobby.

I'd guess in a few years from now there won't be as many companies as there are now.

Trust me, there are more lucrative areas they can have their Engineers and other people working on rather than performance parts.

People like Shane and I are passionate about the industry and try help give you people the best product at a fair price we can. I'm certainly not getting rich. I could have worked in the OE world and made a lot more money than I do working in the aftermarket, but I love my job.

All the vendors are getting paid, they aren't getting "stuck". The people that have the debt are the ones themselves that arranged the agreement and are taking any financial burdens or risks.

I know a fair amount about the financials of that company as well as profits on about every PN. The industry overall for every company is in rough shape right now for everyone. Nobody making performance parts for 30+ year old cars is getting rich right now.

We should feel lucky that Holley, Edelbrock, and many others make parts for our hobby.

I'd guess in a few years from now there won't be as many companies as there are now.

Trust me, there are more lucrative areas they can have their Engineers and other people working on rather than performance parts.

People like Shane and I are passionate about the industry and try help give you people the best product at a fair price we can. I'm certainly not getting rich. I could have worked in the OE world and made a lot more money than I do working in the aftermarket, but I love my job.

Maybe you can make me understand how nobody is getting stuck.

In the Bloomberg report it says this,
"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."

So if nobody is getting stuck, then why was the deal only negotiated with 70 percent of the "second-lien noteholders" and not 100% of the note-holders. Were the other 30% not happy with the "deal"?
As far as the 70% of the noteholders, it says they get 45.8% of what they're owed. How is that not sticking it to them?
The reality is probably that 30% of the noteholders didn't want to get boned and the other 70% figured they may as well get boned by taking 45.8% of what they're owed instead of nothing.
I don't know anything about this financial situation but I can imagine the conversation went something like this.
Holley (to noteholders): "Well, you guys can either take 45.8% of what we owe you or you can take nothing if we completely erase our debt. Which do you want?"
Noteholders: "Ummmmmm.........well I guess you giving us 45.8% of what you actually owe us is better than nothing, so I guess we'll take 45.8%."
And once again, what about the other 30%?

Maybe I'm completely wrong about this, so if I am please explain these two questions.
1. Why not 100% agreement between the noteholders?
2. If someone is owed X amount of dollars and you are only going to pay them Z*.458, even with an agreement, how is that not sticking it to them?

Mike

Because the noteholders are rich and can use the loss to deduct from there other gains.:D

They can then pay less taxes, so us poor people have to suck up the extra loss tax revenue.:(

Because the noteholders are rich and can use the loss to deduct from there other gains.:D

They can then pay less taxes, so us poor people have to suck up the extra loss tax revenue.:(

LOLOLOL,
Now that is good.......but sadly it's close to the truth.

Sounds like they tore a page out of George Bush's playbook; Spend, Spend, Spend then walk away

"Sounds like they tore a page out of George Bush's playbook; Spend, Spend, Spend then walk away"

This is just me two comments away from getting it slammed into CE!!

All I'm going ta say is that this is just another example of "I/E" at it's finest!!

The money that is bantered about here is small IF the one's getting rich offa the whole deal would back off and only take what's morally right and then THEY can pay everything off proper!!

Ain't gonna happen tho, now is it AND I CAN'T do it!!

pdq67

Dang, as good as these guys are they could run our country, just spend more than you have. Its that simple.:yes:

Yep, I'm still waiting for a response to my questions, but I'm sure it will never come.....at least not in anything but corporate spin/double talk.
But it's okay. I'm still laughing from the first round of corporate spin/double talk. I mean, Shane, don't you realize how ludicrous it is to say your company is "fine" when you're declaring bankruptcy and shorting your creditors.
Here's just a little hint. If your company is declaring bankruptcy.....IT'S NOT FINE. It may be fine after the bankruptcy and you've stuck it to the people you owe money to but it's not fine now.
Don't worry though. I don't really expect a response as I'm sure you are incapable of anything other than corporate spin speech.

Mike

In reference to Holley sticking it to someone and walking away - it is true that none one is getting "stuck" with the debt. There are basically two parties that have financial interests in Holley, the holding company Kolhberg and the bond holders. Not counting the revolving debt, prior to the reorganization Kolhberg basically owns and manages Holley and Holley owes the debt to the bond holders. Although Holley operates profitably it got to the point that Holley could not make the interest payment (not to mention pay down the principle) on its own profits and Kolhberg no longer would cover the difference to make the interest payment. So Holley defaults on the interest payment to the bondholder. Basically the reorganization is Kolhberg handing the ownership (equity) of Holley to the bond holders. The loser is not the people carrying the debt but Kolhberg who managed Holley into the debt. I think that the best outcome for Holley has occurred. Too bad it did not happen sooner. It is in the best interest of the new owners to help Holley be successful.

.....I don't really expect a response as I'm sure you are incapable of anything other than corporate spin speech.

Mike

http://www.ls1tech.com/forums/showthread.php?t=862717&highlight=holley

post #6

http://www.ls1tech.com/forums/showthread.php?t=862717&highlight=holley

post #292

http://www.pro-touring.com/forum/showthread.php?t=39833

post #13

Andrew