‘ there will be no layoffs arising from this ’
‘ substantially improved capital and reduced debt position ’
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Graves says that all orders placed since the November 15th petition must be paid in full pursuant to the bankruptcy code . “ That is the law , and that is what we are well funded to ensure . “ In an effort to ensure our vendors are not impaired , we are asking the Court for permission to pay any outstanding amounts owed vendors prior to the filing . Any goods received by us in the 20 days prior to the petition being filed will be paid in full . Older debts are then subject to bands and percentages based on age and what the bills were for . However , we will be certain to make every effort to ensure that the maximum possible amount is paid within the limits of the law , and we will be working the discretion that the courts have . We will make sure that the courts understand that our vendor partners are critical to the interests of all concerned on a moving forward basis .” Turning to the future , Graves is positive about the outlook . “ We think the work we have done to restructure and refine our business in the past 18 months has put us in good shape in strategic terms . “ We believe we are well structured and will now be well financed for the current market environment and for that environment in the coming years .” In which connection , Graves agrees that reasons for cautious optimism appear to be emerging . “ It is impossible to put a timescale on it at this stage , but even if we are faced with a season or two of an essentially flat market , there are signs that we should have seen the worst of the decline by now . Tucker Rocky has weathered the decline in the ‘ metric ’ market , where we have been broadly
‘ there will be no layoffs arising from this ’
‘ substantially improved capital and reduced debt position ’
flat in a down market . For everyone though I think the decline in the V-twin sector has reflected quite directly and quite quickly into parts and accessory sales . “ However , we are seeing some signs of improvement in some parts of the country and some parts of the market . Oil industry regional employment appears to be picking up , and farm prices have improved , so with rural areas being so important for the powersports industry , it may be that the national employment statistics and still very good macro-economic indicators point to some improvement coming soon . “ I think that Harley ’ s new product program will start to see their numbers improve , and that Indian will continue to grow well . There are some signs that some of the newly emerging customer groups may be going to start to migrate towards mainstream custom platforms before long too . “ I think there are more positive trends emerging in the V-twin market than we ’ ve seen in the past couple of years . Certainly , from our point of view , I think our brands and their product lines are well positioned for whatever lies ahead . We have great product for traditional cruiser riders , and we also have the brands that can speak to the emerging generations of consumers , too . I think we are uniquely well placed in that respect . “ That is more reason why the timing of our capital restructuring makes sense . We want to be sure that we are able to respond to whatever demand emerges and capitalize on the strengths the business undoubtedly has .”
New Owners
Key to the MAG restructuring plan has been the “ enthusiasm ” of the new ownership group to back the restructuring plan and provide the capital backing moving forward . Those new owners are …
Monomoy Capital Partners LP
Founded in 2005 , Monomoy Capital Partners is a New York based private investment firm with $ 1.5 billion in committed capital in a family of private equity funds . “ We make investments in middle market businesses that can benefit from operational and financial improvement . “ We implement customized business improvement programs at our investments using Monomoy ' s proprietary operating system , which reduces operating expenses , increases profitability and encourages profitable growth . “ Our approach works . To date , Monomoy ' s companies have generated over $ 2 billion in combined sales and they now employ more than 10,000 team members across four continents .” www . mcpfunds . com
BlueMountain Capital
Founded in 2003 , BlueMountain is a London based equity investor . “ At BlueMountain , we seek to build an enduring partnership that consistently meets the expectations of our investors . “ We are a diversified alternative asset manager with a heritage in the credit markets . Our multi-strategy platform spans five integrated investment capabilities – credit , equity , structured finance , global markets and volatility , and private capital . “ We have over a decade of experience and $ 22 billion in firm assets under management across absolute return , private capital and customized single investor funds .” www . bluemountaincapital . com
Contrarian Capital Management L . L . C .
“ With over thirty years of distressed investing experience , broad global network , and considerable knowledge of the restructuring process , we believe provides us with a competitive edge . “ The Contrarian team actively looks for “ off-the-run ” opportunities that have significant barriers to entry , and companies that are less heavily trafficked by larger hedge funds and long-only managers . “ One of Contrarian ’ s most distinctive features is the stability and continuity of its management . Contrarian selectively becomes actively involved in restructurings when circumstances warrant - when we believe that we can add value to the process and realize significant returns for our investors .“ www . contrariancapital . com
Andre Lacy killed in motorcycle accident in Africa
LDI Ltd ., LLC has announced the death of its Chairman , Andre B . Lacy , November 30th , at age 78 . Lacy passed away in Botswana in a singlerider accident while on a private motorcycle tour in southern Africa . “ We are saddened to share the news that Andre B . Lacy passed away ,” said J . A . Lacy , Chief Executive Officer and President of LDI . “ Andre was known for his entrepreneurial fire and sense of adventure in business and life . We take comfort knowing that he passed away while pursuing one of his passions in life , and are inspired by the legacy of leadership that he leaves .” Following graduation from Denison University , Lacy started his career at LDI ’ s founding enterprise , U . S . Corrugated Fibre-Box , where he worked his way through the corporate ranks . Following the sale of U . S . Corrugated , he was named Executive Vice President and Chief Operations Officer of the newly created Lacy Diversified Industries , the holding company that would become LDI . He was elected CEO of LDI in 1983 and Chairman of the Board in 1991 . He remained Chairman following his retirement from LDI in 2006 . It was under Andre Lacy ’ s leadership that LDI first entered the motorcycle industry with the 1989 acquisition of Tucker Rocky Distributing . The day-to-day stewardship of the business has been in the hands of Andre B . Lacy ’ s son J . A . Lacy as President and CEO of LDI in recent years , a fourth-generation member of the Lacy family to manage the company , it was J . A . Lacy who oversaw the merger of the Motorsport Aftermarket Group ( MAG ) with Tucker Rocky in 2014 .
8 AMERICAN MOTORCYCLE DEALER - DECEMBER 2017 www . AMDchampionship . com