The Holley Bankruptcy Story
by CP Staff
According to papers filed in the U.S. Bankruptcy Court in Wilmington, DE, Holley Performance Products Inc. filed for Chapter 11 protection on Monday after agreeing with major creditors on a plan to lighten its debt load.
A maker of specialty products for the performance automotive and power sports replacement markets, Holley is one of the nation's largest supporters of drag racing. It is profitable, but its positive cash flow has for years gone to pay interest on its debt, court documents say.
Holley will pay all general unsecured claims in full, according to an affidavit from Thomas W. Tomlinson, chief financial officer of the reorganizing company.
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A senior Holley spokesperson wanted to "...just to let you know Holley is totally fine. In fact, better than fine now. Basically, we just wiped away a ton of our debt and turned it in to equity without impairing any vendors, employees or consumers. Business will be same as usual. The original investors have turned over the company to the second tier investors who now own a very profitable company at a much lower debt load."
The privately held company has been involved in restructuring efforts since 2005, court documents say. The Holley line of products encompasses Holley Performance Products, Hooker Headers, NOS Nitrous Oxide Systems, Earl's Performance Plumbing, Lunati Camshafts, Weiand intake manifolds and superchargers, as well as Flowtech exhaust systems.
In 1896, in Bradford, Pennsylvania, George and Earl Holley took an interest in motorcycle racing. From there grew a performance empire that encompassed motorcycles, carburetors, ignition devices and more. THe company has undergone several changes, including a 1968 merger with Colt Industries.
In 1994, the original equipment division was sold to Borg-Warner, which led to the relocation of Holley Replacement Parts' headquarters to Bowling Green, KY. At this time, the company's name became Holley Performance Products.
With our hopes, Holley and its captive brands will remain strong contributors to the performance aftermarket for another one hundred years.
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