Monday, September 28, 2009

Auto-parts maker Holley files for bankruptcy




WILMINGTON, Del., Sept 28 (Reuters) - Holley Performance Products, a maker of high-performance carburetors and automotive fuel-injection systems, filed for bankruptcy on Monday, its second filing in less than two years.
The privately held company, which is a major supporter of drag racing and NASCAR racing, said in court documents that sales have fallen as much as 40 percent since it emerged from bankruptcy last year.
In addition, the company's business supplying emission control components to vehicle makers suffered as a major customer, Caterpillar Inc, discontinued a line of truck engines.
Thomas Tomlinson, the company's co-chief executive and chief financial officer, said in court documents that Holley has been negotiating with holders of the company's first-lien secured debt to restructure its finances.
The company rejected a forbearance proposal by debt-holders including Wells Fargo Foothills Inc, as the administrative agent, and Regiment Capital Special Situations Fund IV LP, which Tomlinson said would have taken $2.5 million out of the business.




Posted by Kelsey Hoffman

2 comments:

  1. We can honestly admitt that this is the beginning of the end for muscle cars and their high perfomance additions. Today's vehilces come almost entirely equiped, and have been upgraded nearly to their maximum potential. The future is grimm for the big engine, gas eating monsters of the past, but has nothing but great things to show for the monsters of the future. Unfortunately the muscles cars of the 60s and 70s will soon be museum worthy, and truely deemed as vintage antiques.

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  2. Hey that is so great news. I really don’t know about that think. So thanks for inform me. And now I often visit on that blog so please keep posting me. For the more information visit on www(dot)autosellernetwork(dot)info.
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