I just read that holley performance products filed for bankruptsy february 12th 2008!! I hope this does not include their sub companies, and does not stop holley from production. Anyone else hear this? I'm kinda skeptical..
The story has been around for a few weeks now. They have a positive cash flow but not enough to service the debts they have. That is why the restructuring of the debt through the bankruptcy. They have also sold Lunati cams to some private investors.
Holley made a pile of acquisitions that racked up a large amount of debt, but didn't bring in the increase in business that they'd expected. Servicing that debt has been consuming their profit, and the current owners stopped injecting additional cash into the business. The proposed settlement will exchange 90% ownership of the company for most of the existing debt.
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