GeorgeGatto
03-21-2003, 05:25 AM
Thought you all would want to see this....
Cannondale Completes Auction of Bicycle and Motorsports Divisions
2003-03-21 10:19 ET - News Release
Also News Release (U-BIKEQ) CANNONDALE CORP
BETHEL, Conn., March 21 /PRNewswire-FirstCall/ -- Cannondale (BIKEQ.PK)
today announced the results of yesterday's separate auctions of its bicycle
and motorsports divisions. The auctions for the assets of both divisions
were conducted under Section 363 of the United States Bankruptcy Code at the
Company's Bethel, Connecticut headquarters, pursuant to the March 3rd, 2003
order by the Bankruptcy Court. Cannondale filed a voluntary petition for
chapter 11 protection in the U.S. Bankruptcy Court in the District of
Connecticut (Bridgeport Division) on January 29th, 2003.
After a vigorous auction, the assets of the Company's bicycle and
motorsports divisions are to be purchased by an affiliate of Pegasus
Partners II, L.P. ("Pegasus"), subject to the approval of the Bankruptcy
Court. The terms of the winning bids were not disclosed. Cannondale's
largest secured creditor, Pegasus had agreed in late January to act as the
"stalking horse" bidder in the sale. At that time, Pegasus stated its
commitment to working with current management and operating the bicycle
business as a going concern. Pegasus 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." Besides its Connecticut and Pennsylvania locations, the
Company also operates subsidiaries in Europe, Japan and Australia. Although
included in the sale, the subsidiaries had not been included in or affected
by the Chapter 11 filing.
Montgomery was also eager to thank the many groups who have supported
Cannondale through the Chapter 11 process. "Our dealers, suppliers,
customers and employees have really stood by us, and we're extremely
grateful." said Montgomery. "I'd also like to thank the many state officials
in Pennsylvania who have been so cooperative and supportive, particularly
the Governor's Action Team and the Department Of Community And Economic
Development. I'm confident that the senior management team, led by Dan
Alloway and Scott Montgomery, will continue to uphold the culture and values
that have made Cannondale a great company."
Scott Montgomery and Alloway voiced their eagerness to move forward as
Cannondale begins to emerge from bankruptcy. "The successful auction and the
speedy resolution now enables us to focus on bicycle delivery and service as
we enter the busy spring selling," said Alloway, Cannondale's Vice President
of Sales and European Operations. Scott Montgomery, Cannondale's Vice
President of Marketing, concurred. "We're happy to be able to concentrate on
the bike business again, and we're feeling great about the future with
Pegasus as our partner," said Montgomery. "We're producing and shipping 2003
product every day, and the 2004 line is loaded with new innovations."
David Uri, a Partner at Pegasus explained its bid for Cannondale.
"Cannondale is one of the world's premium bicycle brands," said Uri. "The
fact that the bike division has remained profitable despite the distraction
and costs of its now closed motorsports business clearly demonstrates the
strength of the brand. Our job now is to let Cannondale concentrate on what
Cannondale does best -- designing, manufacturing and marketing lightweight,
high-performance bicycles for the specialty retail market."
Jeffrey R. Manning of Legg Mason Wood Walker, Inc, the Baltimore,
Maryland-based financial firm that assisted Cannondale in the sale process,
stated that there was a great deal of interest in the Company, despite the
uncertain economy and events in the Middle East. "Cannondale is an
internationally recognized brand, the bike business is profitable, and has
always been profitable," Manning added. "With the ability to focus
exclusively on its bike business, the Company should do very well as it
emerges from bankruptcy."
The auction marks Cannondale's continued rapid progression through the
chapter 11 process. Earlier this month workers returned to the Company's
Bedford, Pennsylvania bike 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 the Court's anticipated approval of yesterday's auction and
the subsequent closing of the sale. Elizabeth Fox of Fox Racing Shox,
Chairperson of the Official Committee of Unsecured Creditors, stated that in
connection with the auction process, the Committee reached a favorable
agreement with Pegasus and fully supports the sale to Pegasus. Fox commented
that she hoped this agreement would pave the way for the continuation of the
supportive relationship between Cannondale and its vendors.
Cannondale is the world's leading manufacturer of innovative,
high-performance, lightweight aluminum bicycles, successfully marketing its
bicycles and cycling accessories in more than 70 countries worldwide.
Pegasus Capital Advisors, L.P., based in Greenwich, Connecticut, is a
private equity investment firm with approximately $800 million under
management.
Cannondale Completes Auction of Bicycle and Motorsports Divisions
2003-03-21 10:19 ET - News Release
Also News Release (U-BIKEQ) CANNONDALE CORP
BETHEL, Conn., March 21 /PRNewswire-FirstCall/ -- Cannondale (BIKEQ.PK)
today announced the results of yesterday's separate auctions of its bicycle
and motorsports divisions. The auctions for the assets of both divisions
were conducted under Section 363 of the United States Bankruptcy Code at the
Company's Bethel, Connecticut headquarters, pursuant to the March 3rd, 2003
order by the Bankruptcy Court. Cannondale filed a voluntary petition for
chapter 11 protection in the U.S. Bankruptcy Court in the District of
Connecticut (Bridgeport Division) on January 29th, 2003.
After a vigorous auction, the assets of the Company's bicycle and
motorsports divisions are to be purchased by an affiliate of Pegasus
Partners II, L.P. ("Pegasus"), subject to the approval of the Bankruptcy
Court. The terms of the winning bids were not disclosed. Cannondale's
largest secured creditor, Pegasus had agreed in late January to act as the
"stalking horse" bidder in the sale. At that time, Pegasus stated its
commitment to working with current management and operating the bicycle
business as a going concern. Pegasus 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." Besides its Connecticut and Pennsylvania locations, the
Company also operates subsidiaries in Europe, Japan and Australia. Although
included in the sale, the subsidiaries had not been included in or affected
by the Chapter 11 filing.
Montgomery was also eager to thank the many groups who have supported
Cannondale through the Chapter 11 process. "Our dealers, suppliers,
customers and employees have really stood by us, and we're extremely
grateful." said Montgomery. "I'd also like to thank the many state officials
in Pennsylvania who have been so cooperative and supportive, particularly
the Governor's Action Team and the Department Of Community And Economic
Development. I'm confident that the senior management team, led by Dan
Alloway and Scott Montgomery, will continue to uphold the culture and values
that have made Cannondale a great company."
Scott Montgomery and Alloway voiced their eagerness to move forward as
Cannondale begins to emerge from bankruptcy. "The successful auction and the
speedy resolution now enables us to focus on bicycle delivery and service as
we enter the busy spring selling," said Alloway, Cannondale's Vice President
of Sales and European Operations. Scott Montgomery, Cannondale's Vice
President of Marketing, concurred. "We're happy to be able to concentrate on
the bike business again, and we're feeling great about the future with
Pegasus as our partner," said Montgomery. "We're producing and shipping 2003
product every day, and the 2004 line is loaded with new innovations."
David Uri, a Partner at Pegasus explained its bid for Cannondale.
"Cannondale is one of the world's premium bicycle brands," said Uri. "The
fact that the bike division has remained profitable despite the distraction
and costs of its now closed motorsports business clearly demonstrates the
strength of the brand. Our job now is to let Cannondale concentrate on what
Cannondale does best -- designing, manufacturing and marketing lightweight,
high-performance bicycles for the specialty retail market."
Jeffrey R. Manning of Legg Mason Wood Walker, Inc, the Baltimore,
Maryland-based financial firm that assisted Cannondale in the sale process,
stated that there was a great deal of interest in the Company, despite the
uncertain economy and events in the Middle East. "Cannondale is an
internationally recognized brand, the bike business is profitable, and has
always been profitable," Manning added. "With the ability to focus
exclusively on its bike business, the Company should do very well as it
emerges from bankruptcy."
The auction marks Cannondale's continued rapid progression through the
chapter 11 process. Earlier this month workers returned to the Company's
Bedford, Pennsylvania bike 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 the Court's anticipated approval of yesterday's auction and
the subsequent closing of the sale. Elizabeth Fox of Fox Racing Shox,
Chairperson of the Official Committee of Unsecured Creditors, stated that in
connection with the auction process, the Committee reached a favorable
agreement with Pegasus and fully supports the sale to Pegasus. Fox commented
that she hoped this agreement would pave the way for the continuation of the
supportive relationship between Cannondale and its vendors.
Cannondale is the world's leading manufacturer of innovative,
high-performance, lightweight aluminum bicycles, successfully marketing its
bicycles and cycling accessories in more than 70 countries worldwide.
Pegasus Capital Advisors, L.P., based in Greenwich, Connecticut, is a
private equity investment firm with approximately $800 million under
management.
