Announcement

Collapse
No announcement yet.

MSD chapter 11

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • MSD chapter 11



    MSD Ignition Blog
    The fastest and quickest cars run MSD!
    MSD initiates voluntary Chapter 11

    Permanent link All Posts
    MSD PERFORMANCE INITIATES VOLUNTARY CHAPTER 11 PROCESS TO COMPLETE AN ORDERLY SALE
    Lenders' Consent To Company's Use Of Cash Collateral Ensures Operations Continue As Usual With the Highest Quality and Outstanding Service

    EL Paso, Texas, September 6, 2013 – MSD Performance, Inc. today 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.
    MSDP's restructuring counsel is Jones Day. Its investment banker is SSG Advisors, LLC. MSDP is also represented by Richards Layton and Finger, as local counsel.
    About MSD Performance, Inc.
    MSD Performance, Inc., headquartered in El Paso, Texas, operates in the power sports enthusiast and professional racer markets where they maintain leading market share positions across all of their product categories under the MSD Ignition®, Racepak® and Powerteq® brands. You can shop our products online at www.msdignition.com, www.powerteq.com and www.racepak.com, or visit one of our many automotive and performance distributors across the country.
    Contacts:
    For Media: For Investment Community:
    Manny Grijalva J. Scott Victor
    MSD Performance SSG Advisors, LLC
    (915) 856-2416 (610) 940-5802
    sigpic

  • #2
    WOW!!! I did not see that coming. When the premier ignition company goes chap 11 Did anyone even get a whiff of this?

    Comment


    • #3
      Ouch! Reorganize, come on back.........
      Ed, Mary, & 'Earl'
      HRPT LongHaulers, 08, 09, 10, 11, 12, 13, 15, 16, 17, 18, 19.


      Inside every old person is a young person wondering, "what the hell happened?"

      The man at the top of the mountain didn't fall there. -Vince Lombardi

      Comment


      • #4
        I am not all that surprised.
        they dove in for...

        an LS engine?

        where is the 300cfm. that is 27 billion other automobiles in the non LS category.

        they gave Honda a hall effect sensor disty .. no American optical?

        I am as dumb as it gets and could make a trillion dollars out of an msd logo.
        Previously boxer3main
        the death rate and fairy tales cannot kill the nature left behind.

        Comment


        • #5
          Hey guys, we're going to give you the full story on this. The sky isn't falling. It was a business decision that was motivated by a couple of factors and we'll explain that. Both Chad and I had conversations with people at MSD today to get the non-legalese explanation about what's up.

          Long story short, they are not going anywhere.
          That which you manifest is before you.

          Comment


          • #6
            Mallory was recently bought out
            and maybe again ..looks like prestolite owns both mallory and accel

            Comment


            • #7
              Sounds like they're just getting permission from its creditors to move some money around.

              Comment


              • #8
                Originally posted by Whelk View Post
                Sounds like they're just getting permission from its creditors to move some money around.
                This seems an overly positive spin. I can't think of a time when seeking refuge from paying your bills is a good thing, ever.
                www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!

                Comment


                • #9
                  a buyers market

                  Comment


                  • #10
                    I'll cut and paste my comment....
                    Interesting spin on bankruptcy, however, bankruptcy is designed to protect the creditors not the debtors. While they may be able to stay the course during and after bankruptcy; the decision isn’t really in their hands anymore. After all, the creditors know that a debtor can go bankrupt; and if they chose to let the Court do the dividing of assets, it’s safe to assume that they think they can do better in Court than they would by negotiating with the current management structure.

                    Yes, they are a sponsor but don’t be misled by their attempts to put a positive spin on a bad situation. Bankruptcy doesn’t care what management has to say. In fact, once they are in bankruptcy court, they have to ask for permission from the Court to withdraw – and that isn’t like a “normal” withdrawal – the creditors get a say in whether or not it happens – those same creditors who were unwilling to renegotiate the terms of their loans….

                    don't drink the Koolaid - bankruptcy practice is a lot of fun (at times) because it's truly the wild west of Court actions... anything can happen.

                    I don't think the profitable divisions of MSD will go away (there is money to be made); but whether or not the same people who posted the press release stay in charge - I don't think I'd be taking any bets of that happening...
                    Doing it all wrong since 1966

                    Comment


                    • #11
                      Originally posted by dieselgeek View Post
                      This seems an overly positive spin. I can't think of a time when seeking refuge from paying your bills is a good thing, ever.
                      yep - one creditor gets paid, another doesn't - as you can imagine, the one that isn't getting paid isn't going to be happy.
                      Doing it all wrong since 1966

                      Comment


                      • #12
                        And, how many times has Holley filed chapter 11 and still here?
                        BS'er formally known as Rebeldryver

                        Resident Instigator

                        sigpic

                        Comment


                        • #13
                          Originally posted by Scott Liggett View Post
                          And, how many times has Holley filed chapter 11 and still here?
                          not sure where this comment fits.... last line of what I said, MSD will likely survive; just not with the same management
                          Doing it all wrong since 1966

                          Comment


                          • #14
                            I read in this months HR were MSD stuff is being counterfeited
                            Thom

                            "The object is to keep your balls on the table and knock everybody else's off..."

                            Comment


                            • #15
                              Originally posted by Scott Liggett View Post
                              And, how many times has Holley filed chapter 11 and still here?
                              Holley has new owners

                              Comment

                              Working...
                              X