Thread: Holley goes belly up

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Originally Posted by erik erikson

ProForm only makes the metering plates and the base plates.

well ? that still cuts in to them ????? they sell a usa hand assemble proform race carb on page 154 in competition products

Originally Posted by pat mccarthy

well ? that still cuts in to them ????? they sell a usa hand assemble proform race carb on page 154 in competition products

O.K,you have got me there.

Originally Posted by erik erikson

O.K,you have got me there.

mark it down do you know i was one of many guys to wheel that 34 pos paint job? i was the only guy from bay city to get in hotrodding small snap shot and all the guys that did more then me were i think piss they spelled my name wrong on the model car box and everyone got a holley model car but me ? good looks never got me anywhere just in the mags

Originally Posted by pat mccarthy

mark it down

I am.
This does not happen very often.
I must be all the cold meds. I have been taking.

Originally Posted by erik erikson

I am.
This does not happen very often.
I must be all the cold meds. I have been taking.

OH dont try that.. i work on meds every day .HEY i am just fine

Originally Posted by pat mccarthy

OH dont try that.. i work on meds every day .HEY i am just fine

Is that you Dad???
See I told you it was the meds.

Originally Posted by robot

They filed Chapter 11 which is reorg and gives them protection from creditors for some period.

Chapter 7 is belly up and liquidation.

BIG difference.

Hmm? Chapter 11,Lay off more American workers,outsource to China & India, yeah, that will get them back on track sounds like a familar story?

if mccain or obama get in office it;ll be 10x worse all over the country

Originally Posted by gassersrule_196

lunati b&m arent they owned by holley to? scat cranks lunaiti cranks. hmm ??? you 2 are impossible

I don't know about the rest, but I can assure you, Scat Enterprises, of Redondo Beach, CA, is NOT owned by Holley. It is owned by Tom Leib, who started the company back in the late 1950's...

FYI, saw on another site that Holley has 390 employees.

What hurts these companies is the shrinking market....in the old days, GM, Ford, and Chrysler put Holleys on quite a few engines....their Purchase Orders were nice, fat ones. Now, the sales are to individuals (thru a distributor and retailer) that hardly total up to a single GM yearly order. Plus, the newer engines dont have carbs so that aftermarket sale is all but gone (there hasnt been a carb on a new car in 15 years or so!!).

Additionally, the used Holley market haunts them. I have Holleys that are 25 years old but still good. If I were to ever need a carb, I would open my big box of Holleys and pull one out, rebuild it, and use it.

That's why Holley is trying to promote stuff like carb conversions for the LS Chevy motors, the digital fuel injection, etc......new markets.

Like everyone said, the buyouts left these companies with a lot of debt that is tough to shake. With the younger crowd tilted to ricers, Holley doesnt have the market appeal to the masses that it once did.

Straight from the donkeys petuna.....
Hello guys, my name is Shane Weckerly and I am the Director of Product Management at Holley. I know the “bankruptcy” word sounds bad, but Holley is fine. Please read the official press release below and then our further comments below that.


BOWLING GREEN, KENTUCKY, February 11, 2008 - Holley Performance Products Inc. (the “Company”) announced today that its Owner/Investors have overwhelmingly approved a plan to dramatically enhance the Company’s capital structure by converting a majority of the Company’s debt into equity.

Thomas W. Tomlinson, the Company’s Chief Financial Officer, said today that “This is a prudent financial move on the part of our Owner/Investors – it tremendously strengthens our Company’s financial position and provides substantial flexibility to invest in our future. This investment will allow the Company to realize its full growth potential and will maximize the value we can return to our investors. The actual conversion of debt into equity will be accomplished through a “Prepackaged” bankruptcy filing that will cancel-out the old capital structure and formally establish the new one. Customers, suppliers, and employees will not be affected.” Mr. Tomlinson emphasized that, “It will be “business-as-usual” at Holley throughout the restructuring process which we expect to be completed in as few as 45 days.”

James D. Wiggins, the Company’s Chief Executive Officer, went on to say that “We are very pleased with the transformation that has taken place here at Holley over the last several years. Today Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities, and diversified revenue sources. We have established a good track record of profitability and growth in enterprise value. This restructuring represents the culmination of tremendous effort on the part of the team at Holley and we are excited to share news of this successful program with you.”

Holley is a leader in the performance engine market, and is used throughout the world in racing, street, marine, and powersports. Holley’s family of companies includes the leading brands in the performance market including: Holley, Weiand, Hooker, FlowTech, Earl’s, and NOS.

So, what does this mean to you, the racer/enthusiast/consumer ? It means that Holley will be a much healthier company and able to bring you better products, technology and support. This can now be done because we won’t be under the same financial constraints of the last few years.

Essentially, what has happened is that the original investment group will transfer ownership to the second tier of investors who were a minority owner. As a result, the debt we now owe is significantly less and puts us in a better position for the future.

This was intentionally structured this way so our vendors, employees and consumers wouldn’t be impaired in any way. It will be business as usual:
• Product will be available as always with no interruption in supply
• Race contingency and event sponsorship programs will continue as planned
• Technical service support via phone, e-mail and at track is unchanged
• All product warranty systems are continuing as normal
• New product development is ongoing and we expect to release several exciting new programs throughout the year and at SEMA/PRI.

Thanks for your support in the past and future.

Boy it sure sounds good when structured and worded that way.......
We are taking this oppertunity to fleece the investors as to not be under such a debt load ,do not worry we are just taking advantage of the system to dump our debt on others and this will not affect you ,unless you are one of the others.
I would like to take this oppertunity to assure our patrons that even though this is a low down dirty business move ,we are still a reputable company and will not use these business practices on you the consumer ,feel free to do business with us ,even though we are part of the problem and not the solution.
I hope we are able to sweep this under the table as to not discourage our dealers and distributors from getting more product ,based on the fact we might file on them too....
Do not worry we are fleecing the investors in a way that does not affect shipping or product availability or sponsorship pay outs.
We thank you for doing businees with us and hope to file chapter 7 on you in the future.
Have a nice day..........

Sounds from the press release that stock is being sold to private investors (the previous minority group), the cash raised is being used to pay off suppliers, creditors, etc. The original investment/(mis)management group is either stepping out or has been reduce to a minority position.

Sounds like the only losers in the deal are the original investment group who may have been asleep at the wheel.

Just a different read on the release.

Cheers, Mark