According to a report filed on Reuters.com, Holley Performance Products filed for bankruptcy on Monday. This represents the company’s second filing in less than two years.

Holley Performance Products, a privately held company, stated in court documents that sales have fallen as much as 40 percent since emerging from bankruptcy less than two years ago.

Company co-chief executive and chief financial officer Thomas Tomlinson, according to the Reuters report, said in court documents that Holley has been in negotiations with holders of the company’s first-lien secured debt in an attempt to restructure its finances.

Holley rejected a forbearance proposal; one that Tomlinson said would have taken $2.5 million out of the business. The debt-holders had considered foreclosing on the company’s assets if an agreement couldn’t be reached. Instead, Holley’s Chapter 11 filing provides protection from the creditors.

The case is filed in U.S. Bankruptcy Court, District of Delaware, No. 09-13334.

For a more detailed report - http://www.reuters.com/article/bankruptcyNews/idUSN287294020090928

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