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CCI Sale to Dae-Il

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Plumber

Posts: 1536

Joined: Tue Aug 26, 2003 12:01 am

Location: S.Calif.

Post Thu Feb 07, 2008 11:52 am

CCI Sale to Dae-Il

(Edited press-release) from Motorcycle Product News (MPN)
Custom Chrome Sale Toward Closing
Jan. 31- Global Motorsports Group announcement. Global has agreed to sell its assets to Dae-Il USA Inc., and has filed Chapt. 11 to help facilitate the sale, including Global's U.S. operations, consisting of the Custom Chrome, Motorcycle Stuff and Jammer divisions as well as the stock of Global Motorsports Group GmbH which manages Global's European arm.
Dae-Il has been manufacturing RevTech products for Custom Chrome in its Korean facilities since the line made its debut. Former CEO and one of the original Custom Chrome founders Nace Panzica will return to lead the company. Despite a 10-year absence from the helm of CCI, Panzica is still a serious player in the V-Twin industry, even if a bit more behind the scenes. CEO, Panzica really can't say anything until the sale closes, however, the company did issue a prepared statement:

"We are pleased to have entered into an agreement to be acquired by Dae-Il USA and are confident that this transaction will position GMG to re-establish its leadership position in the marketplace," claims Scott Avila, Global's Chief Restructuring Officer. "We have carefully reviewed our options and believe that a sale will provide the best long-term prospects for the Company's customers, vendors and employees."

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I heard that "low reserve" bin-inventories will smooth the transition process. Thanks for the many years of reliable parts. Best wishes to Day2.
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Curt!

Posts: 903

Joined: Sat Dec 30, 2000 1:01 am

Location: Hill City, Ks. USA

Post Thu Feb 07, 2008 12:56 pm

Re: CCI Sale to Dae-Il

WOW, That's big news, Plumber.
They killed themselves though, with heavy handed sales practices, no regard to customer expense, and that my way of the hiway attitude. The high freight costs are mostly what turned me away. I don't think I even placed one order with them in 07. They really don't have many parts that fit my customer base, but it was good to have that option when customers needed something.
Tough times ahead for the MC industry.
Curt!
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Plumber

Posts: 1536

Joined: Tue Aug 26, 2003 12:01 am

Location: S.Calif.

Post Thu Feb 07, 2008 3:03 pm

Re: CCI Sale to Dae-Il

Actually, it's smart times ahead for the m/c industry. There are build-options, there a build-kits-for-customer options. There are better parts that even a year ago options. It's up to the industry (mfgr. to consumer) to craft to their customer base.
First you have to know the rules. The rules say we can create a kit market for OHV LInkert machines that vent to the free-air. That's a fact. Any debate on that?
Second, the industry needs 3.5 tanks. It could survive (in diminishing interest) on the presumed "rafter reserves" that people have in their collections, I suppose. Whoop-e. Fun for a few.
That's it, beyond pop-up tank hardware and a never ending assortment of parts that get passed to customers that don't fit.
I remember in the 80's recession (before Evo), our local Harley dealer sold fiberglass dish antennas to make ends meet. A factory approved move, since it wasn't another motorcycle brand. There they were...along with factory warranty returns, just utilizing available retail space to hedge through the lean times. Building a customer base on the fact that most people that would be interested in Harleys, also watched t.v.
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Curt!

Posts: 903

Joined: Sat Dec 30, 2000 1:01 am

Location: Hill City, Ks. USA

Post Mon Feb 11, 2008 11:24 pm

Re: CCI Sale to Dae-Il

It ain't a done deal, yet.......

US Trustee Battles Global Motorsport
Monday February 11, 1:51 pm ET
US Trustee Opposes Global Motorsport Bid Protections

WASHINGTON (AP) -- The federal watchdog in Global Motorsport Group Inc.'s Chapter 11 case wants to block the company from offering what she called "inappropriate" protections to the leading bidder in a potential auction of the company's assets.


"The circumstances set forth are not all intended to promote a healthy auction process," U.S. Trustee Kelly Beaudin Stapleton said in documents filed Friday in the U.S. Bankruptcy Court in Wilmington, Del.

The bankruptcy court is set to consider whether to give Global Motorsport permission to auction off its assets on Monday.

Global Motorsport, an international supplier of after-market parts and accessories for Harley-Davidson Inc. motorcycles, has a leading bid of $16 million lined up from Dae-II USA Inc. The company has proposed to pay Dae-II up to $300,000 in expense reimbursement, and if its bid loses at auction, a $500,000 break-up fee.

Stapleton called the amount of the expense reimbursement "excessive" because the bankruptcy court usually grants reimbursements that are 1 percent of the purchase price, while Global Motorsport's request for $300,000 is closer to 2 percent.

Stapleton also took issue with the company's request to make both payments "under a variety of circumstances," including if the sale doesn't close by March 12 or if the company decides to purse a plan of reorganization.

She said Dae-II wouldn't deserve the payments if an auction doesn't occur because the bid wouldn't have added any value to the bankruptcy estate. She asked that Global Motorsport's request be changed to only allow the break-up fee if Dae-II's bid loses at auction.

Global Motorsport, which is based in Morgan Hill, Calif., filed for Chapter 11 protection on Jan. 31 after facing increased competition and slow growth. The company also cited a failed $85 million bond offering in 2004 as a cause of its distress.
Curt!

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