SRAM CEO Stan Day on Lehman Brothers Chapter 11
CHICAGO, US – Todays announcement of Lehman Brothers Holdings Inc. that it filed a Chapter 11 petition could result in a pause for finalizing the equity partnership with SRAM Corporation. This is expected
This is expected by SRAM Corp. CEO Stan Day (photo) who, answering on questions by Bike Europe said: “Our partnership was targeted to be completed during the first week of October. "
"The bank syndication is complete and the capital calls have been sent to Lehman Brothers Merchant Banking’s Limited Partners. The transaction itself has not been closed."
"SRAM is financially sound and completely capable of moving forward"
“The selection of Lehman Brothers Merchant Banking (LBMB) to be our strategic financial partner was based on the quality of the people working at LBMB and their vision for the future. That choice has been reinforced over the almost two months since that decision was made through working with the LBMB partners. The LBMB partners did not cause the problems that have created the problems at Lehman Brothers. The LBMB partners have been caught in an unexpected crossfire.
“In theory Lehman Brother’s filing Chapter 11 shouldn’t impair the ability of LBMB to complete the transaction. They are separate but related entities. Certainly the headlines loom large and their may be a practical pause.
“The most important point is that SRAM is financially sound and completely capable of moving forward without the LBMB investment. However, this effort was a long term strategic choice by SRAM. We wanted to add an experienced professional investor to our shareholder base. If the transaction doesn’t occur there is absolutely no disruption to our operations. We will simply move forward and reconsider finding a new strategic financial partner at some point in the future. 30 day lead time, inspiring product innovation and consistent quality are still what our customers should expect from SRAM.”