OMC files banckruptcy

OMC Bankruptcy Proceedings

They filed bankruptcy 22 Dec 2000

You can follow the actual case docket on the U.S.Ilinois Nothern Bankruptcy Court Racer system. Click on the docket button to view the docket. You can select "Reverse Order" and the most recent documents will be returned first. When the list of documents is returned, you can click on "MORE" at the bottom of the page to advance to the next page. Some documents require a tiff viewer. We use AlternaTIFF.
Adobe supplies a free .pdf viewer.

More information about this specific court can be found on their web site. These cases are in the Eastern division.

See Mr. Wizard's Whats Next for OMC? page for full coverage of the OMC situation.

  Bankruptcy Docket Documents

Documents in the docket can be viewed using the links and process above.

Feb 28: Document 662: Genmar and OMC arguing over selling some trademarks free and clear of encumbrances. Lists a Quebec attorney. May be the Princecraft tradename issue.

Feb 28: Document 661. Genmar and OMC are arguing over the Murfreesboro property. Sounds like OMC is saying it was not included in the sale, or is at least not included free and clear of all encumbrances. This is the reason the sale has not been consummated.

Feb 21: Document 622. Mr. Rabe Mr. Rabe says that when Mr. Jones received advisement from the Engineering and Service depts concerning the Ficht engine contained "serious design flaws which were potentially dangerous", Mr. Jones decided to sell the engines anyway. Mr.Rabe complained and says his complaints were "a proximate cause of the termination of his employment from OMC on Sept. 30, 1998." Mr. Rabe earlier negotiated a severance agreement (was to be secured by payment of at least $1 mil into a trust) which he says may have be covered by and OMC insurance policy. Now he wants his money. The document also further publicizes the potentially dangerous Ficht engine design flaws.

Feb 16: Document 602. OMC requests court to allow termination of certain employee and retiree benefits.

Feb 9: Document 541. The actual signed sales agreement. Contains a great deal of inside information. 244 page tiff document. Strongly encourage industry firms to download it as this info may not be available long.

Feb 6: Documents 460-479. Financial ledgers for the engine division and seven boat units. These detailed ledgers could be of great use to competitors and others considering entering the industry. We encourage these groups to download them as they may not remain on the site long after the trial. 460, 461 and 462 are for the engine division. The remaining ones are for the various boat operations.

Docket Documents:
  460,461,462 Engine Division
  463,464,465 Recreational Boat Group
  466,467 Fishing Boat Group
  468,469 Aluminum Boat Group
  470,471 Latin American / Carribean
  472,473 Recreational Boat Group Limited Partnership
  474,475 Outboard Marine Transportation
  476,477 OMCENA
Feb 7: Document 431. Allows OMC to purchase the remaining interest in Ficht for $5.8 mil from the proceeds of the sale. as a condition of sale by Bombardier. OMC owned 51 percent. They will buy the remaining 49 percent with proceeds of sale, then Bombardier will own it all.

Jan 24: Document 509: The Coke Plant EPA superfund site was removed from the sale, freeing up potential purchasers from future liability. Sounds like it will just be left on the books as belonging to a bankrupt company. They dumped the liability to taxpayers and other PRPs (Partially Responsible Parties) like North Shore Gas.

Feb 2: Document 377. Notice of Highest and Best Qualified Bids for the Debtors Assets. It contained the Godfrey Conveyor Company bids. $32.8 mil in two pieces ($22.5 mil for Four Winns and Lowe, $10.3 mil for Chris Craft, SeaSwirl, and Hydra-Sports.)

S&S Acquisitions LLC $1.5 mil for Hydra-Sports, Tracker Marine $2.5 mil for Stratos Javelin, and stated, "discussions are continuing with potential bidders of the engine business and an announcement is anticipated at the Auction identified below (Feb 5th)."

Jan 26: Document 307. Volvo Penta files Routine Motion to Receive Notice (be on service list). OMC still owes them money.

Jan 25; Document 300. Dr. Pepper and 7-Up compels to reject a promotional contract. OMC was to provide prizes for contests of which 14 winners of boats and motors have not received their prizes. Some winning as long ago as July of 2000. They also speak of damages to their reputation for not being able to deliver the prizes.

Jan 24: Document 295. United States granted permission on behalf of the United States Environmental Protection Agency to be added to the service list.

Jan 24: Document 294. State of Illinois granted permission on behalf of Illinois Environmental Protection Agency to be added to the service list.

Jan 24: Document 289. National Highway Safety Transportation Administration objects to any disposition of OMC that does not require completion of safety recall campaigns.

Jan 24: Document 282. OMC files objection to attempt to add a committee to represent the needs of employees past and present employees and retirees. They say the appointments of an additional committee of creditors or of equity security holders is not necessary to assure adequate representation.

Jan 24; Document 280. OMC responds to attempts by City of Waukegan and North Shore Gas to block sale of the Waukegan facility based on environmental and other issues. First they say whoever buys the property will have to assume the environmental liabilities, so the City should not worry about it. Then they say the city is primarily interested in developing the lake front property and ...

If the City wants such redevelopment to occur, they City should focus its efforts on assisting the Debtor's in finding a winning bid instead of preventing the Debtor's from selling the property all together.

As to North Shore's second argument regarding the level of the Debtor's disclosure (speaking of the Environmental superfund problems), it is difficult to imagine how North Shore, which has not approached the Debtors as a prospective purchaser and who like the City, has not actually participated in the due diligence process, but instead has merely read the data room index, is qualified to comment upon the Debtor's due diligence efforts.

They even tell North Shore and the City their disclosure of contents of the index (not the materials themselves) is in violation of a confidentiality agreement they signed with OMC.

RBBI Comment: OMC made no friends with the comments above. They will be passing on a very damaged relationship with these two folks to the next buyer if it sells.

Jan 22: Document # 259. Petition to have committee off current, former and retired employees participate in the hearings to insure their views are represented.

Jan 22: Document 254. North Shore Gas files to prevent sale of certain properties in Waukegan, specifically the Coke Plant (EPA superfund site covered in our Plant Site EPA Ground Pollution Problems section.

In practical terms, the remediation efforts at the Coke Plant site render portions of the land virtually unusable for the foreseeable future ...

The "fire sale" pace of the sale of the Debtor's assets and the omission of relevant EPA documents from it data / due diligence room multiplies the chance that a purchaser could gain title to the Coke Plant site without the knowledge of the environmental quagmire it is buying.

The other PRP's (Partially Responsible Parties, including North Shore Gas) at the Coke Plant site intent to fully assert all their rights against OMC and any other purchaser of the sites, including, but not limited to contribution for the cost of the EPA ordered remediation.

Jan 19: Document #249. City of Waukegan files to block sale of the plant based on hazardous waste liabilities, back taxes, unpaid water bills, etc. They also point out possible interest of developers in the lakefront property.

Jan 17: Document #219. Orbital objects to the sale of its technology.

... the Orbital Agreement includes an intellectual property license that cannot be assigned by the Debtors, much less assigned to a third party, without Orbital's consent.
Jan 10: Document #181. Full details of the bidding procedure.

OMC Initiates Voluntary Reorganization
Plans Include the Sale of its Engine and Boat Businesses

OMC press release
22 Dec 2000

    WAUKEGAN, Ill.,-- Outboard Marine Corporation (OMC)
and several of its subsidiaries today filed for voluntary reorganization under
Chapter 11 of the US Bankruptcy Code in US Bankruptcy Court in Chicago.  
OMC has sought protection under Chapter 11 so that the company can implement 
its plans to sell some or all of its engine and boat operations. OMC also
announced a significant reduction in its North American workforce affecting
salaried and hourly employees at all of its operations.
OMC stressed that the company expects to continue operations during the
reorganization process.

OMC has requested that the Bankruptcy Court allow the company to continue
compensation and benefit plans for its remaining employees, maintain customer
sales, support and service activities, and make post-petition payments due to
suppliers in the ordinary course of business.

OMC said it has received a commitment from its bank group to provide
debtor-in-possession financing totaling $35 million, which is expected to be
sufficient to permit the company to operate while it implements its
restructuring plan.

The company has the support for this course of action from its major

The company said the filing has been made in order to enable OMC to
complete the sale of its boat and engine operations under Court supervision.
OMC said it intends to do everything it can to expedite this process and to
consummate a beneficial transaction as quickly as possible.

OMC said that the reduction in force affects approximately 4,000 employees
at its boat and engine operations in North America.

Outboard Marine Corporation is a leading manufacturer and marketer of
internationally-known boat brands, including Chris-Craft(R), Four Winns(R),
Seaswirl(R), Javelin(R), Stratos(R), Lowe(R), Hydra-Sports(R) and Princecraft;
marine accessories and marine engines, under the brand names of Johnson(R) and
Evinrude(R); and Ficht Ram Injection(R) -- the world's premier low-emission
two-stroke outboard engine technology.

SOURCE Outboard Marine Corporation (OMC)
Web Site: 

RBBI Comment: Little odd to leave the tagline on at the bottom about how they are a leading mfg.

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