|Surprise for C dale haters||Wild Bill|
Jan 28, 2003 8:24 AM
|Cannondale Enters Chapter 11
It is official, Cannondale Corporation (Nasdaq: BIKE), has officially filed a voluntary Chapter 11 bankruptcy petition in an attempt to reorganize its debt.
Part of the press release is a follows:
Cannondale and its lenders, The CIT/Business Credit, Inc. and Pegasus Partners II, L.P. have reached an agreement in principle that, subject to Bankruptcy Court approval, will provide the Company with interim financing to fund post-petition operating expenses and to meet supplier and employee commitments. "The interim financing will be used to continue the operation of our bicycle business," said Cannondale Founder and President Joe Montgomery.
Cannondale has also reached an agreement in principle with Pegasus Partners II, L.P. to sell substantially all of its assets to Pegasus Partners II, L.P. pursuant to Section 363 of the Bankruptcy Code, subject to better and higher offers and court approval. Pegasus would operate the bicycle business as a going concern with the involvement of current management and would purchase separately the Company's motorsports assets, including the intellectual property related to the design of Cannondale's motorsports products. In the meantime, management continues to work with other potential interested buyers for either or both of these businesses.
|We talked about this...see below.||CJ838|
Jan 28, 2003 9:46 AM
|Listen, C'dale bikes are undoubtedly some of the best in the world. I would hate to see them close shop. Although, it's not likely since it only really effects the American division, and more specifically, it's related to the motorcycle production dragging down the rest of the business. They will bounce back, but are certainly not in any danger of going out of business. Should you lose Canonndale, you lose a great product choice for thousands upon thousands of riders. It wouldn't be good for cycling. BTW, I ride a Giant ONCE frame, so I'm not a C'dale cheerleader. Just appreciate a nice bike and recognize the contribution they make to cycling.