Officials at Redline Performance Products, Inc. (AMEX: RED), which was engaged in the design, engineering and marketing of Redline snowmobiles, announced the company has filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code with the United States Bankruptcy Court, District of Minnesota.
Redline leaders say they have determined that the company, which employed 25 people full-time as of March, does not have sufficient resources to continue its operations and has been unable to secure additional financing required to produce its snowmobiles and fund its operating activities.
All business activity and operations have ceased. Also, all directors and officers have resigned except Mark Payne, the company's president and CEO, who will remain to facilitate the transition to a court-appointed trustee. Redline was started in 2000 by Kent Harle and Chris Rodewald. Payne recently took over as CEO after serving as chief financial officer since 2002.
Redline raised $10 million in an initial public offering last year. Reporting on its fiscal year ended in March, the company posted a loss of $8.8 million. Furthermore, the company did not file its quarterly report on Form 10-QSB for the quarter ended June 30, 2004, and does not intend to make such a filing. Trading of the Redline’s common stock has halted, and the company cancelled the annual meeting of shareholders scheduled for September 10, 2004.
Calls from Powersports Business to Redline were not returned.
Copyright 2004 Powersports Business