Folks Of Interest Holley Inc Dying?

I heard today that Holley is once again going down. Too bad.

I wonder what Pro-stock will do now?

 

I think a thread like this just recently got closed down. I'm one of those people that prefers Holley carbs, but their prices have just gone out of sight. If I'm going to spend that kind of money, I'm more inclined to try other brands. Not saying that's a cause for their downfall, but it could be some kind of economic indicator. I was told there would be no math.

 

Despite Holley bankruptcy filing, BG employees won’t be affected

A Bowling Green company has filed bankruptcy for the second time since 2008, but local workers will not be affected, an official says.

Holley Performance, a high-performance automotive parts supplier, filed Monday for Chapter 11 bankruptcy protection in the District of Delaware bankruptcy court.

The filing is a continued attempt to restructure the company’s debt - it filed for bankruptcy protection in 2008 for similar reasons, emerging about 46 days later “virtually seamless,” said Tom Tomlinson, co-chief executive officer and chief financial officer.

The company employs about 250 workers in Bowling Green; the bankruptcy should not result in layoffs, Tomlinson said.

“The bankruptcy will not have an impact on staffing,” he said. “Our operations have historically been profitable, and we’ve enjoyed positive cash flows despite high levels of indebtedness.”

The company has operated in Bowling Green for about 40 years, Tomlinson said. It currently operates on Russellville Road.

In the late 1990s, the company was bought by a private equity firm, which mainly purchased Holley with borrowed money, burdening the company with debt, Tomlinson said.

“All of their debt was put on the company’s balance sheet,” he said. “So the company’s challenges over the last few years have been dealing with that.”

The firm purchased about five other companies, further increasing debt that reflected on Holley’s balance sheet, Tomlinson said.

Holley was purchased in 2008 by a group of investors who still own the company.

The company entered bankruptcy during the first quarter of 2008 and “took care of a great part of it,” Tomlinson said. “The remainder of the acquisition will be converted into equity in this process.”

According to court do***ents, company officials and lenders attempted to reach an out-of-court agreement, but failed.

Lenders say Holley has defaulted on the debt terms of its 2008 bankruptcy and are threatening foreclosure, according to reports.

After its 2008 bankruptcy, the company revised its business plan and took cost-cutting measures, such as closing a Mexican plant and consolidating it with a plant in Mississippi. Since then, it has been profitable “with performance in line with or ahead of plan projections,” according to court do***ents.

It also planned to grow its equipment business, which it is now trying to sell after a deal with Caterpillar for diesel truck engines fell through, according to reports.

The recession affected the company, forcing officials to reduce its staff in late 2008, Tomlinson said.

But “we’ve seen steady improvement throughout the spring and summer,” he said. “It’s been a very strong month from a sales standpoint.”

In fact, the company is projected to grow as it brings new products to its lines, which will create additional work hours, he said.

“We look at this as just another pit stop in bankruptcy, like the last one,” Tomlinson said. “We’re excited about Holley’s future.”

 

Anybody have figures on how much the CEO got paid and stock holders dividends last year?
If they really are bankrupt, both should be zero $, just like they are about to pay their suppliers and subcontractors!

And pro stock is just another "Nostalgia Stock" cl*** now. Otherwise they'd be running computerized FI.

You can close it now...

 

Amen to that.Been on the receiving end of chapter 11 proceedings a few times.Big time screw job for all supplyers involved.Even if you were paid within 90 days of filling you fall victem to isssues.Burl.

 

If I had my guess about it, this all stems from the lenders' unwillingness to restructure the debt appropriately and perhaps placing some undue pressure on the business.

Actually, I think perhaps one lender in particular was being unreasonable and was trying to grab ***ets while the grabbing was good, Wells Fargo.

These private equity groups, such as who owns Holley, have been the undoing of our economy as they have no real interest in the manufacturing companies they gobble up. They're just like real estate flippers, looking to grab a buck based on forecasted appreciation before the debt bites their ***es. They'll shift debt around to the cash cows to make some other interest look good enough to sell, profit, then move on to the next ********. Alot of these mechanisms have fallen through or been properly exposed by the downturn in the economy. Their grand mistake is depending on volume to prop up the debt they've ***igned to the cash cow, effectively breaking the cow's legs when volume drops even by a fraction.

Its really a case of money managers fighting over a chew toy, that toy being Holley. If we're lucky, the court will spin Holley back out to itself and send the banks and equity groups home with a red ***. Then, they can get back to the real business of hot rod parts absent the bad influence of big money.

It doesn't sound to me like Holley is broke or in imminent danger, just using the court to remove itself from "chew toy" status and have its actual story heard. They look to be in good shape individually, but the collective is kinda bad - thanks to their owners.

Hud

 

Aren't the PE firms out of Holley now... they are wiped out right?

 

If Holley was trying to do something with Cat on diesel truck engines, was it to help Cat so they wouldn't make the decision to end truck diesel engine production in 2010? Just curious.

 

Quick , someone inform the white house they'll take them over!

 

The biggest problem with Holley is the debt service that came from when Jeff King was running the place and went on a stupid buying spree. He way over paid for companies like ******, FlowTech, Lunati (which they resold at a loss), Earl's Performance, So Cal Speed Shop (which they also sold back), N.O.S. and Weiand.
They paid way over market value for these companies and never recovered. No wonder he's gone. Unlike the Press release that the CFO out out that is a brilliant work of Spin Doctoring, i think they are having cash flow problems. So many things are on back order and when a company isn't producing parts, it is usually related to cash flow. At least that's my take on it all.