El Paso-based MSD files for Chapter 11
POSTED: Friday, September 6, 2013 - 1:13pm
UPDATED: Friday, September 6, 2013 - 1:17pm
MSD: 'Operations will continue; Jobs will be preserved' — MSD Performance, long a staple of motor and powersports, announced Friday morning that the company had started voluntary Chapter 11 bankruptcy proceedings.
According to a statement on MSD's website and facebook page, the company file the voluntary petition with the US Bankruptcy Court today. The filing does not include the company's non-US entities.
In the statement, officials added: "MSDP has determined that the best way to preserve value for its stakeholders is through an orderly sale of substantially all of its assets. To ensure the most efficient sales process possible and to optimize the potential results for all parties, the Company has decided to execute this sale process under the protection of the U.S. Bankruptcy Code.
Through the Chapter 11 filing, MSDP seeks to preserve continuity, to the greatest extent possible, for its customers, employees and business partners while it continues discussions with potential buyers to secure the highest and best outcome for its businesses."
Ron Turcotte, MSD's Chairman and CEO also stated, "Selling operations on a going concern basis in an orderly sale through Chapter 11 is the best way to preserve as many jobs as possible, best serve our customers and will allow our operations to emerge from bankruptcy in a relatively short time frame," said Turcotte. "The operations we are selling have strong product portfolios, advanced technologies and continue to perform well operationally."
MSD has been a developer and manufacturer of performance ignition systems for the last 40 years; providing ignition systems and components to virtually every type of motorsports and powersports organizations around the world.
To read the complete statement, click HERE.