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LCM files chapt 11

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Old 07-22-2009, 12:17 PM
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How does this effect a dealerships ability to take a boat in on trade where the owner owes money on the trade in. If banks are pulling floor plans and lines of credit I would think this is or will become an issue for any dealer.
To hard to answer. You don't know if they have lined up debtor in posession financing or if the banks have in fact pulled lines of credit if any. You also don't know how any debt is structured and if there are personal guaranties. Is the trade going lower what is owed overall in debt, if so you don't need a line? Was the filing due to a short(er) term working capital shortage?

In short you really have no way of knowing if there is any effect at all on how they do business. Chapter 11 is for reorganization, not a liquidation so you do have the ability to operate. If Chapter 11 killed every business that filed we would't have an airline left if this counry!
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Old 07-22-2009, 01:27 PM
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Hang in there dude!

Hope Lake Cumberland doesn't go the way Cope & McPhetres did out on the west coast
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Old 07-22-2009, 01:29 PM
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To hard to answer. You don't know if they have lined up debtor in posession financing or if the banks have in fact pulled lines of credit if any. You also don't know how any debt is structured and if there are personal guaranties. Is the trade going lower what is owed overall in debt, if so you don't need a line? Was the filing due to a short(er) term working capital shortage?

In short you really have no way of knowing if there is any effect at all on how they do business. Chapter 11 is for reorganization, not a liquidation so you do have the ability to operate. If Chapter 11 killed every business that filed we would't have an airline left if this counry!
True, but you must also remember that Chapter 11 is an admission of bankruptcy, or more liabilities than assets. It also freezes all vendor charges prior to the filing and puts secured lenders in front of all other obligations or debts. The bottom line is this is good information for anyone considering a purchase or service through the dealership. I would also check to be sure that any boats placed there for consignment sale are clearly defined as not part of their "assets" in any way. While proof of ownership will usually win out in the end, there can be lengthy delays if the sheriff moves in with a padlock. I also don't know what impact this might have on deposits for later delivery made pre-petition.


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Old 07-22-2009, 01:44 PM
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and puts secured lenders in front of all other obligations or debts.

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Apparently you haven't been following the new case law established by the Chrysler and GM bankruptcies!

However secured creditors should have priority the question becomes whom is secured and who was the first to file or perfect. Vendors can be secured if they properly perfect the lien.

Hope they are able to sucessfully negotiate the Chapter 11 and continue in business.
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Old 07-22-2009, 02:06 PM
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Apparently you haven't been following the new case law established by the Chrysler and GM bankruptcies!
I don't think they established new case law. I believe the government simply trampled on the existing statutes. I doubt Obama will inject himself in this case as there probably aren't enough liberal labor interests involved.
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Old 07-22-2009, 02:38 PM
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I don't think they established new case law. I believe the government simply trampled on the existing statutes. I doubt Obama will inject himself in this case as there probably aren't enough liberal labor interests involved.

True..true..
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Old 07-22-2009, 03:10 PM
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No reason to delete

Last edited by Pro1; 07-22-2009 at 03:39 PM. Reason: No Reason to delete
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Old 07-22-2009, 03:23 PM
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I really hate this for these guys. I have been around them at numerous functions and they seem really cool. They also get involved in all local activities, and are big sponsors on our lake. Hang in guys and best of luck.
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Old 07-22-2009, 06:40 PM
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Why would posting this be disrespectful? It is public info.I live 1 hr from LCM and bought a boat from Shrogren my experience was that if they did not think you had a big checkbook then you were not worth thier time.Just because you dont flaunt it doesnt mean you dont have it.
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Old 07-22-2009, 07:50 PM
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I was treated well by them. I would buy a boat from LCM. I hope they come through it well. If they make it they will be stronger than ever.
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