|Pegasus Buys Cannondale On Auction||abicirider|
Mar 23, 2003 5:02 AM
|I know somebody a few days ago(day of bankruptcy auction) was asking who bought cannondale it is pegasus Cannondale largest secure creditior, seems they want to keep the bike division alive but not the motor division, below is the details:
Cannondale auctions bicycle and motorsports divisions
Cannondale has announced the results of Thursday's separate auctions of its bicycle and motorsports divisions. The auctions for the assets of both divisions were conducted at the company's Bethel, Connecticut headquarters. Cannondale filed for chapter 11 bankruptcy protection on January 29th, 2003.
Both the bicycle and motorsport divisions are to be purchased by Pegasus, Cannondale's largest secured creditor, subject to the approval of the bankruptcy court. The terms of the winning bids were not disclosed. Pegasus had committed in late January to working with current management and operating the bicycle business, although the company has indicated that it does not intend to operate the motorsports division.
Cannondale's founder Joe Montgomery was pleased with the outcome of the auction. "This is a huge step toward successfully realizing our three key objectives: ensuring a quick emergence from chapter 11, restoring focus and adding resources to the bike division so it can continue to thrive and prosper, and preserving our employees' jobs in Connecticut and Pennsylvania," Montgomery said in a written statement.
Earlier this month workers returned to Cannondale's Bedford, Pennsylvania factory to resume production of bicycles and cycling accessories, ending a temporary work furlough. It is expected that Cannondale will officially emerge from chapter 11 within the next several weeks, following court approval of the auction and the subsequent closing of the sale.
Be Safe out on the Roads !!!!!