May 22, 2001
Mira Loma, CA - Ultra Motorcycle Company announced that the company filed a petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California on May 21, 2001. The filing was necessitated by the threat of a foreclosure sale scheduled later that day by the company's secured creditor, Finova Mezzanine Capital Inc. Although UMC is in discussions with prospective new lenders to refinance the Finova debt, UMC and Finova have been unable to reach an agreement to extend the foreclosure date.
UMC is continuing all normal business operations and will continue uninterrupted services to its dealers and customers.
"UMC wishes to reassure its shareholders, its customers, and its dealers that the company will continue to operate without interruption. We remain dedicated to serving the needs of our customers and dealers and turning out the high-quality product that they and the industry have come to expect of Ultra. We feel that we will be able to reach an accord with Finova, through the bankruptcy process, obtain needed financing from one of our prospective new lenders, and come out of this Chapter 11 proceeding much stronger and more confident of a successful future, than ever before," said Harold "Hal" Collins, chief executive officer and president. "Protecting the investments of our shareholders, the livelihoods of our employees and the interests of our customers and dealers are our priorities."
UMC is taking steps to ensure that it will meet its obligations to its vendors and suppliers. Collins commented, "We have requested and expect to receive a prompt authorization from the Court to continue to pay all salaries, wages and benefits to our valued employees."
Copyright © 1997-2002 Motorcycle NewsWire All Rights Reserved.
