"Carla A-G" <
[email protected]> wrote in message
news:[email protected]...
> They filed for chapter 11 but they're still going to sponsor a team:
>
>
http://www.rainer-wurz.com/eng/news.htm
>
> And apparently they still owe 2002 salaries:
>
>
http://www.stiksandstones.com/
>
> - CA-G comfused...
>
> Canadian Girls Kick Ass!
>
Carla Here is a note from the prez. to his bike shops. Of course, he puts some serious spin on it,
but I'm not unloading my bikes just yet.
Ashmore
----- Original Message ----- From: To: Sent: 1/28/2003 2:58:47 PM Subject: A Message From Joe
Montgomery
Dear Cannondale bicycle retailer -
I apologize for having to make this important announcement to you in such an impersonal manner, but
given the number of Cannondale dealers around the world, it is simply impossible for me to speak to
each of you directly.
As you may already know, Cannondale announced yesterday that we plan to file to restructure our
company under Chapter 11 of the Bankruptcy Code, and that we have suspended the operations of our
motorsports division. We took this step in order to facilitate a financial restructuring that will
eliminate the continuing cash drain associated with the motorsports division. While we complete the
restructuring through the Chapter 11 process, our bicycle business will continue to operate without
interruption. In fact, we are servicing warranty issues and shipping bicycles and other cycling
products on a daily basis.
It is critical that you know that our bicycle division is not going out of business. Our goal is to
preserve and strengthen our core bicycle business, so that we can continue to compete successfully
and continue providing you with innovative cycling products, just as we have throughout the duration
of the motorsports project.
For our dealers, our intention is that the filing will hardly be noticed at all. You will deal with
the same account manager, credit manager and in-house dealer service rep. In addition, we have
received a commitment for substantial post-petition financing from our lenders. We expect this
interim financing, which is subject to Court approval, to provide adequate funding for all
obligations incurred after the filing, as well as our ongoing operating needs during the
restructuring process. We look forward to resuming production in our Bedford bicycle facility in the
coming weeks.
We hope that the only difference you'll notice will be an anticipated improvement in our
performance. With our interim financing in place, we're actually in a better position to order parts
from our vendors than we have been in recent months. As a result, we're looking forward to smoothing
out our production and delivery of bicycles. Without the distraction of motorsports, we'll also be
much more focused on bringing new, innovative technologies to market for you to sell.
Our plan for the next several months is to provide you with the best possible support, and to keep
dealer service, customer service and your sales at the highest levels. With your help, we are very
confident that we will be successful and continue to grow Cannondale as an ever-stronger and
ever-more-profitable part of your business.
Many companies that have filed for reorganization - including Harley-Davidson, Macy's, and Toys 'R'
Us - have strengthened their businesses and are performing well today. These success stories shared
a common element, and that is teamwork. With your continued support, we are optimistic that we can
produce similar results.
Thank you for your understanding, and for your help in moving through this challenging period. We
will keep you informed as we go forward.
Sincerely,
Joe Montgomery Founder & President