The Motorsports Aftermarket Group, known as MAG, a conglomerate of & multiple brands, retail and distribution channels within the motorsport & industry, has filed for Chapter 11 in the District of Delaware as it & looks to clear itself from some substantial debt.As part of process, & MAG is eliminating $300 million of debt through a & “debt-equity” swap, which basically means MAG will exchange company & equity (stock) for the debt that MAG owes its financial lenders.

Any remaining debt has prompted MAG and most of its brands to file for & relief under Chapter 11 bankruptcy; according to court papers.

MAG, which owns some of the biggest names in the motorcycle industry, & including the parts/apparel distributor Tucker Rocky, Vance & Hines, & Roland Sands Design (under Performance Machines), and J&P Cycles, & released a statement that was filled with confusing financial jargon, & but regardless of this debt-equity swap and Chapter 11, says operations & and customer service will continue uninterrupted.

MAG, Owner of Multiple Motorsports Brands, Files for Chapter 11

“Through this process, which we have been working very hard on with our & key lenders to accomplish over the past month, we will de-lever our & balance sheet allowing us to more effectively compete in today’s & evolving powersports market,” says MAG CEO Andrew Graves.

“MAG’s businesses will continue to operate unaffected and the Company & has sufficient liquidity to fund operations. Customer service and sales & will continue, employees will receive wages and benefits as before, and & vendors and suppliers will be paid in the ordinary course of business & going forward.”

Due to exchange of equity for $300 million in debt from its lenders & Monomoy Capital Partners, Blue Mountain Capital and Contrarian Partners, & MAG will now emerge with new owners and a new board of directors. MAG & reports that the future owners have “deep experience in consumer & products and lifestyle companies, including distribution, retail and & manufacturing.”

It’s worth noting that MAG also owns the Motorcycle USA, LLC, known as & MotoUSA, which ceased its online motorcycle news publication in February & 2016 after 20 years of operations.

In regards to Chapter 11, court papers show 19 MAG brands have filed for debt relief, including MAG itself:

• Velocity Holding Company, Inc.
• Velocity Pooling Vehicle, LLC
• DFR Acquisition Corp.
• Ed Tucker Distributor, Inc.
• J&P Cycles, LLC
• Kuryakyn Holdings, LLC
• MAG Creative Group, LLC
• MAGNET Force, LLC
• Motorcycle Superstore, Inc.
• Motorcycle USA LLC
• Motorsport Aftermarket Group, Inc.
• Mustang Motorcycle Products, LLC
• Performance Machine, LLC (owns Roland Sands Design)
• Ralco Holdings, Inc.
• Rally Holdings, LLC
• Renthal America, Inc.
• Tucker Rocky Corporation
• Tucker-Rocky Georgia, LLC
• V&H Performance, LLC (Vance & Hines)

MAG expects says it expects to “emerge in the first quarter of 2018 as a stronger, better capitalized and competitive company.”

There are quite a few you recognize, right? It’s not good news at all.Now we wait and see how it sorts out. Hope they don't go the way of Custom Chrome.

Sourse: ultimatemotorcycling

#Moto #Bike #Motorcycle