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.

 

No, Holley has not filed for bankruptcy. They've filed for Chapter 11 protection while they restructure.

 

Chapter 11 is a chapter of the United States Bankruptcy Code.

 

What do they need to "restructure" for?

 

https://www.thirdgen.org/forums/carb...lley-news.html

 

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.

 

Not to mention that Chapter 11 is relatively business as usual for a lot of companies.

K-mart filed, then PURCHASED Sears.