MSD files for bankruptcy

[Keith 944]

Don't know how or if this will effect anyone. if they are going to sell or what? My attorney wife saw that one of the companies she had seen on my cars filed 9/6/13 for bankruptcy. she also added this was with their affiliates:
Autotronics controls corp.
Superchips Inc.
Competition systems Inc.
Brink acquisitions
Edge parent
Edge products
Racing services Inc.

[442OLDS]

There goes yet another contingency sponsor.

[Keith 944]

it was odd. I won an IHRA national and got a certificate from them, no cash. maybe that was a sign of what was coming?
Who knows? maybe this can be a good thing if bought out or restructured....

[1320racer]

big news in our world but not really surprising given the companies in the performance industry that have filed, been bought out or folded over the past decade.

Further proof that drag racing is on life support.

[Chad Rhodes]

I notice racepak isn't on that list

PS go away 1320racer, no one here cares what you think

[Comp 798]

Link to details of filing.....

http://bankruptcynews.dowjones.com/a...%26r%3dwsjblog

[Mike Delahanty]

This sounds more like issues w/ lenders compounded by a lingering financial hangover from the economic crash in 2008. See the following.



MSD Performance Inc ., which makes performance auto products for street and racing use, on Thursday filed for Chapter 11 protection.
After failing to find a buyer to please its lenders last year, and with a forbearance period running out Friday, MSD Performance said it would use the breathing room offered in Chapter 11 to find a buyer.
"Running a marketing process under court supervision will enable the debtors to maintain their ongoing businesses and preserve the jobs of their approximately 450 employees," MSD Performance Chief Executive Ron Turcotte said in court papers filed Friday.
To ensure MSD Performance can afford the costs of a Chapter 11 sale process, lenders have agreed to let the company use the cash securing their claims, subject to court approval.
Based in El Paso, Texas, MSD Performance was founded in 1970 as a research and development company by two engineers who were working on a U.S. military missile range. It has since shifted gears, now making ignition performance products like performance coils, spark-plug wires and fuel-injection systems.
MSD Performance sought to accelerate its growth in 2005 and 2006, snapping up several companies---Superchips, Racepak and Edge Products---during the height of the mergers and acquisitions boom. Superchips' products, for instance, let users increase the horsepower, torque and fuel efficiency of their vehicles.
While the deals allowed MSD Performance to expand its product offerings, they also required the company to take on debt to fund the purchases. In 2009, MSD Performance sought to confront its significant debt load---as well as challenges from increasing competition and the economic downturn---through an out-of-court restructuring.
Still, its liquidity remained tight, and the company struck a deal with its lenders to push out its debt maturity from March 2012 to January 2013 as long as it put itself up for sale. While several offers came in, none were high enough for the lenders, who have since entered into a series of forbearance agreements with MSD Performance that have kept the debt from coming due.
Among MSD Performance's lenders is an affiliate of private equity firm Z Capital Partners LLC , which since May has acquired a majority of the $91.9 million that's currently outstanding. Z Capital this year offered to purchase MSD Performance's assets, but the company's other lenders couldn't reach a consensus on the offer before the forbearance period expired.
"The debtors remain hopeful, however, that negotiations with Z Capital or any other interested bidder will continue in connection with a court-supervised sale process," Mr. Turcotte said in court papers.
Any sale plans would be subject to the approval of the U.S. Bankruptcy Court in Wilmington, Del., where MSD Performance sought protection.
MSD Performance reported assets of $50 million to $100 million and debts of $100 million to $500 million in its bankruptcy petition.
Lawyers from Jones Day and Richards, Layton & Finger are representing MSD Performance in its bankruptcy case, which has been assigned to Judge Peter J. Walsh.

[novassdude]

Originally Posted by 1320racer

big news in our world but not really surprising given the companies in the performance industry that have filed, been bought out or folded over the past decade.

Further proof that drag racing is on life support.

What in the hell does this have to do with the health of Drag Racing? There products are used in every motorsport out there not to mention huge in the street market.

So It must be proof that the automotive world is on life support.

[Chad Rhodes]

Originally Posted by novassdude

What in the hell does this have to do with the health of Drag Racing? There products are used in every motorsport out there not to mention huge in the street market.

So I must be proof that the automotive world is on life support.

It's just proof that 1320racer is a moron

[bigshow2966]

Probably just a restructuring to dump off debt and come out more profitable. Big companies do it every day.