I guess we don't buy enough Holley parts

[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....