Administrator For Outboard Motor Group
Sydney Morning Herald
Thursday January 11, 2001
The Australian arm of US outboard motor manufacturer and boat builder Outboard Marine Corp, OMC Australia, has had an administrator appointed after its US parent filed for bankruptcy protection.
A division of Greenmarine Holdings, OMC Australia is best known for its Evinrude and Johnson brands.
OMC Australia had annual revenue of about $100 million and held about 25 per cent of the local outboard motor and parts market, OMC Australia's company secretary Mr Brian Hazel said.
OMC Australia also owns Gold Coast boat builder Haines Hunter.
The administrator of OMC, Mr Peter Walker of Ferrier Hodgson, said that he was confident OMC Australia would be able to repay its debts of $9 million.
OMC US filed for voluntary administration on December 22 after laying off 4,000 of its 7,000 worldwide work force.
In US court papers, OMC listed $877 million in assets and debts of $768 million.
Mr Hazel said OMC Australia would continue trading while buyers were sought for the US divisions.
``If the company refloats, we have the cash to keep trading," he said.
Mr Walker said he expected to dismiss a ``small percentage" of the company's 100 Australian staff in the coming weeks.
Bids for the US divisions of the company will be accepted until January 26, with an open auction to be held on January 31.
OMC has been forced to discount its wholesale prices for engines and parts as dealers are forced to honour warranties.
© 2001 Sydney Morning Herald
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