MSD Ignition Chapter 11

oldcutlass · 2013-09-26 23:00:01

Wow, go figure. http://blog.hemmings.com/index.php/2013/09/26/high-performance-ignition-manufacturer-msd-files-for-chapter-11-bankruptcy/comment-page-1/

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September 26th, 2013, 04:00 PM

oldcutlass

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MSD Ignition Chapter 11

Wow, go figure.

http://blog.hemmings.com/index.php/2...omment-page-1/

September 26th, 2013, 05:26 PM

Professur

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Cash for clunkers finds another victim.

September 26th, 2013, 07:40 PM

joe_padavano

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Quote:

Originally Posted by Professur

Cash for clunkers finds another victim.

Huh???

While I'll be the first person to point out that C4C was a $3 billion waste of my tax money, it isn't remotely related to this.

Read their press release:

Quote:

...excessive debt, driven by peak-market acquisitions under previous management...

So, in other words, MSD overpaid to acquire other companies and now they are reorganizing to get out from under that bad decision. This is no different from the people who overpaid for their houses then renegotiated their mortgage to get out from under their bad decision. Ultimately, it's the investors/stock owners who get screwed.

September 26th, 2013, 07:58 PM

oldcutlass

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Yup and that combined with a soft aftermarket.

September 26th, 2013, 11:01 PM

70Post

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Quote:

Originally Posted by joe_padavano

Huh???

While I'll be the first person to point out that C4C was a $3 billion waste of my tax money, it isn't remotely related to this.

Read their press release:

So, in other words, MSD overpaid to acquire other companies and now they are reorganizing to get out from under that bad decision. This is no different from the people who overpaid for their houses then renegotiated their mortgage to get out from under their bad decision. Ultimately, it's the investors/stock owners who get screwed.

Same thing that put Holley into Ch. 11 (growth through aggressive acquisitions VS. organic growth like Edelbrock has done). Holley reorganized and is still alive and kicking......MSD is HOPING to do the same.