I guess we don't buy enough Holley parts

[Steve P.]

Holley has filed for chapter 11.

See link>>  http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080211&id=8173870

I have done my part to keep them busy...

[mally69]

WOW     I would have never guessed that would happen..  Well I guess the last carb I bought was a Demon and I kinda fell in love with demon stuff but, its some what a holley design.   Oh well its a shame if they are done for ever.   I have bought lots of holley stuff also..

[471_Magnum]

I have done my part to keep them busy...

Me too.

[68RT4ME]

I can't imagine that they would be done forever. Big companies tend to file chapter 11 to get reorganized (US Airlines) and be protected by the Gov. in the meantime. Too bad that don't work the same for a mom and pop operation. 

[69bronzeT5]

Wow, I didnt see that coming. When I think of carbs, I think of Holley

[Goldfinger71]

Holley I think will be fine....I think.

Too much power in the industry to just disappear...

[Charger_Fan]

Edelbrock will buy them for .50 on the dollar. Then they'll have two carb lines.

[Khyron]

it's because of the Carb faliure on Mr. Angry!


damn them! damn them to hell!

[hemihead]

Holley will be ok . They probably just trying to dodge some creditors and have a reason to point to to get rid of a union . Then they can cut wages and benefits . Same old corporate game . If they filed  , i think it is a Chapter 13 then it would be trouble .

[bull]

I think this type of thing will keep happening to companies that have moved from providing "necessary" parts to providing "specialty" parts as technology has moved beyond the need for certain items. I see the same thing happening with tires right now since I've started seriously considered buying a set of tires for my Charger. As more and more people and companies buy the 16"-22" wheels and tires many of the 14"-15" stuff is falling by the wayside. Try finding a 295/50R15 tires now days. They're still out there but I bet there are less than half as many choices as there was 5-10 years ago.

[dukeboy_318]

hmmm, maybe i should order my lunati cam then before they disappear, wait didnt they sell lunati recently?

[BrianShaughnessy]

A. Piss poor management that bought up a bunch of the other brands and then couldn't pay the debt because greedy CEO took his cut first.

B.  An attempt by greedy CEO to void everything, move all mfg ops to China and cash out.

C.  All of the above.

[hutch]

A. Piss poor management that bought up a bunch of the other brands and then couldn't pay the debt because greedy CEO took his cut first.

B.  An attempt by greedy CEO to void everything, move all mfg ops to China and cash out.

C.  All of the above.

Yep, they went down hill fast.  I bet they will get bought up by Edelborock or some other major player.  They have too much to let just go away like that. THey have a history.

[greenpigs]

  I bought a 750 Vac Sec Holley new and a 750 Edelbrock new to replace the Holley that I kept popping the power valve on. Yes I know there are ways to avoid that.... now. It will  be yet another branch of Edelbrock as well.

[hemi68charger]

I was shocked when I heard as well...........  But, I think they'll survive or the legacy will continue with someone else..............

[1970rs]

Hi, My name is Jay McFarland and I am a Sr.Product Manager at Holley.  I found this post and would like to shed a little light on the subject. The "bankruptcy" word sounds harsh, but Holley is fine.  Please read the official press release below and then there are 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.

I wanted to make sure everyone understood what this means and that it still means business as usual for Holley. Let me know if you have any questions.

Thanks and I am glad to be a part of the forum,
Jay

[PocketThunder]

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.

So how does the initial debt go away if it is being handed over?

Sounds like and episode of south park   

Step one:  Steal underpants
Step two:     
Step three: Profit!

[1970rs]

The second tier of investors essentially right off that debt.

[Charger_Fan]

That restructuring move pretty much went over my head.
But I'm glad to hear that an automotive performance icon such as Holley is still going to be around. Thanks for letting us know & here's hoping the company will prosper for many more years to come!

Since you're here, I was bummed when you guys stopped making the 4010, I like that carburetor...well, except for the plastic secondary diaphragm cover.

[Troy]

Thanks Jay for the clarification. I don't envy you for having to scour the internet to track down all these discussions. I've had to do it myself in the past but I'm sure it was a much smaller scale.

Troy

[Steve P.]

Hi Jay, welcome to the site. With a name like 1970RS and working where you do I take it you are a car guy..   

I am happy to hear that Holley is on a good road toward the future and very happy to hear that you will be staying open for business.  What would we do without Holley?? Sure some choices exist, but they are NOT Holley.

Again, WELCOME and don't be a stranger.

Steve P.

[1970rs]

That restructuring move pretty much went over my head.
But I'm glad to hear that an automotive performance icon such as Holley is still going to be around. Thanks for letting us know & here's hoping the company will prosper for many more years to come!

Since you're here, I was bummed when you guys stopped making the 4010, I like that carburetor...well, except for the plastic secondary diaphragm cover.

Alot of folks liked that carb.  It was doing really well when we had to get rid of it in 98

[1970rs]

Hi Jay, welcome to the site. With a name like 1970RS and working where you do I take it you are a car guy..   

I am happy to hear that Holley is on a good road toward the future and very happy to hear that you will be staying open for business.  What would we do without Holley?? Sure some choices exist, but they are NOT Holley.

Again, WELCOME and don't be a stranger.

Steve P.

You are correct. I am a die hard car guy and have been since I was small. I have traditionally been a GM guy but let me tell you , I cannot deny good american Mopar Muscle . I have always wanted a 70 Cuda and I have been close up an personal with the new Challenger and that car is awesome. I will try to drop in from time to time when time allows. If anyone has any questions on Holley or our product line, shoot me an e-mail and I will be glad to help.
Thanks,
Jay

[Steve P.]

Well Jay, you just hang around here for a while and we will make a true MOPAR GUY out of you.. The GM's are ok in most of our books, but it's truly a better world when you own a MOPAR.. 


One quick question. I heard a rumor at Big Daddy's that Holley was looking at starting up a wheel plant. Is there any truth to that?? 

[1970rs]

I heard a rumor at Big Daddy's that Holley was looking at starting up a wheel plant. Is there any truth to that?? 

No truth to that. Interestingly enough,back in the 60's Holley did produce wheels and even tires

[Steve P.]

Bummer..  Was hoping for some real competition and Holley has style.

[mally69]

Hey Jay, not to get to far off of the subject, but since your here may I ask what happend between holley and demon carbs. I know there was some friction and heard rumors but whats the real inside scoop between them?

[1970rs]

Hey Jay, not to get to far off of the subject, but since your here may I ask what happend between holley and demon carbs. I know there was some friction and heard rumors but whats the real inside scoop between them?

Holley and Demon never have been in a partnership or tied together in any way, shape, or form. Barry Grant/Demon is simply a carbruretor manufactuer and competition for Holley just like any other carburetor manufactuer.

I hope this answers your question.

[mally69]

Well actually what I meant was, I heard that holley sued demon for copying their product or design of their carbuetors's. I was wondering if that rumor was true.  Sorry I should have pointed that out.

[1970rs]

Well actually what I meant was, I heard that holley sued demon for copying their product or design of their carbuetors's. I was wondering if that rumor was true.  Sorry I should have pointed that out.

Back a few years ago that was the case. When he was making the BG carbs they looked just like a Holley. After the case was won by Holley, the demon came out. That is why the demon looks different.

[mally69]

That was always somthing I wondered about. Thanks      I hope you stick around this site for a while. 

[moparstuart]

Well actually what I meant was, I heard that holley sued demon for copying their product or design of their carbuetors's. I was wondering if that rumor was true.  Sorry I should have pointed that out.

Back a few years ago that was the case. When he was making the BG carbs they looked just like a Holley. After the case was won by Holley, the demon came out. That is why the demon looks different.

  I hate BG and there customer service.  They treated me terrible  and i just spent 1700.00 dollars with them. There product was not at all what they avertised .
   Holley just remaned my six pac carb's and they look and work awesome . I got a flow testing sheet back with them. I'm very happy with your product !!   

[firefighter3931]

Hi, My name is Jay McFarland and I am a Sr.Product Manager at Holley.  I found this post and would like to shed a little light on the subject. The "bankruptcy" word sounds harsh, but Holley is fine.  Please read the official press release below and then there are 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.

I wanted to make sure everyone understood what this means and that it still means business as usual for Holley. Let me know if you have any questions.

Thanks and I am glad to be a part of the forum,
Jay

Jay, welcome to the forum ! 

Thanks for clearing the air on this subject....i knew in my heart that Holley wasn't going to fold up shop ! 

The 4150 is the best carb ever made....bar none ! 



Ron

[moparstuart]

so why did they do away with that carb ?
     

  more picture of my reman six pac carb   , they did a great job on them

[1970rs]

so why did they do away with that carb ?

At that point and time the carb had just became unprofitable.

[bull]

Thanks Jay for the clarification. I don't envy you for having to scour the internet to track down all these discussions. I've had to do it myself in the past but I'm sure it was a much smaller scale.

Troy

Hmm. It never occurred to me that company officials might have to run around the web doing damage control but I guess that's the way it has to be these days.

[89MOPAR]

"Bondholders that own Holley's $4.2 million 12.25 percent senior unsecured notes are slated to get either $100 in cash for each $1,000 worth of bonds, or warrants to purchase equity in the reorganized company."

Maybe there's more to it, but that doesn't sound like full repayment.   

I'm not a financial officer but I'm savvy enough to know that companies do not file for bankruptcy if they intend all creditors to be fully paid.
Someones getting left in the cold whether its the current equity owners, unsecured bond holders, or the tax man.
Still thats business and as a creditor, you sometimes take a loss.
Nice way to fluff the news though....