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Since no one knows, hobbico is now horizon

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Since no one knows, hobbico is now horizon

Old 04-01-2018, 05:13 AM
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Default Since no one knows, hobbico is now horizon

Thatís right boys, with a likely bid ($18.8 million) horizon hobbies has now put them self at the top to acquire companies off of the whole hobbico default. This means horizon will now have control of great planes (O.S. Engines) Arrma Axial and tower hobby also, this is great news because the group at horizon is dedicated to bring race level products to racers and general customers of our hobby. This to me is the biggest step up in the companies history and will bring a much better availability and pricing to the customers in the U.S. especially us California drivers. Horizon hobby is focused on the big stuff right now and it makes me very happy to be a Losi driver/fan!!!!

Last edited by Matt Piva; 04-01-2018 at 05:29 AM.
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Old 04-01-2018, 08:11 AM
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well...there goes Easy Pay lolol.

But maybe now Tower will offer Losi :-D
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Old 04-01-2018, 09:27 AM
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Not a done deal yet. Still has to be approved by the bank. Part of the Horizon deal was that they take on none of the debts from Hobbico which will most likely be a big sticking point in any deal.
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Old 04-01-2018, 08:18 PM
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Originally Posted by MX304 View Post
Not a done deal yet. Still has to be approved by the bank. Part of the Horizon deal was that they take on none of the debts from Hobbico which will most likely be a big sticking point in any deal.
That's news to me!!! I didn't think they could buy that company without taking the owed debts!? That stipulation is going to make this deal a hard one (although they're 18 million dollar bid itself comes with a $540k deposit) so hopefully that can give us an idea of the commitment on horizons bid. Makes me think this could be a harder deal to land then I thought...
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Old 04-01-2018, 08:32 PM
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What was both disappointing and not suprising is that Horizon was the only bidder.
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Old 04-02-2018, 08:39 AM
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Hobbico filed for bankruptcy. I would guess that most if not all of the companies listed as creditors are unsecured. The money that is available will go to pay any taxes, secured creditors(banks and companies with liens on the properties), lawyers, anything left might go to the ESOP they quit paying on long ago. By that time there will likely be nothing left.

The listed unsecured creditors might get a few pennies on a dollar, but likely won't get anything. Horizon will not inherit the bulk of Hobbico's debt in this transaction, you can be sure of that. This is how bankruptcy works. The unsecured creditor always gets screwed.
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Old 04-02-2018, 02:05 PM
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Originally Posted by Apco1 View Post
Hobbico filed for bankruptcy. I would guess that most if not all of the companies listed as creditors are unsecured. The money that is available will go to pay any taxes, secured creditors(banks and companies with liens on the properties), lawyers, anything left might go to the ESOP they quit paying on long ago. By that time there will likely be nothing left.

The listed unsecured creditors might get a few pennies on a dollar, but likely won't get anything. Horizon will not inherit the bulk of Hobbico's debt in this transaction, you can be sure of that. This is how bankruptcy works. The unsecured creditor always gets screwed.
Then, price increase to cover the losses will be passed down to the consumer..
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Old 04-02-2018, 03:32 PM
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Originally Posted by MaricopaAgent View Post
Then, price increase to cover the losses will be passed down to the consumer..
Except the market won't support a price increase. The RC racing industry is clearly in a period of decline. I don't believe we have even began to find the bottom. Increasing prices will only speed the rate of decline by driving more existing racers out and scaring off more who were considering getting involved.

The industry leaders better be talking to one another to find a way to reverse the direction things are headed and price increase are NOT the answer.
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Old 04-03-2018, 07:05 AM
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Originally Posted by MaricopaAgent View Post
Then, price increase to cover the losses will be passed down to the consumer..
Thats not really how it works. "The Bank" or bank/s will write off the debt and they alone have to cover the lose. The Bank/s dont sell consumer goods so the price of wheels and tires dont go up. Chapter 11s happen in business and overall the market isnt affected as long as consumer support in the long term is there. A merger of two companies in the same market can be good if it makes them more competitive within the market but not a monopoly.
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Old 04-03-2018, 07:38 AM
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Originally Posted by bif24701 View Post
Thats not really how it works. "The Bank" or bank/s will write off the debt and they alone have to cover the lose. The Bank/s dont sell consumer goods so the price of wheels and tires dont go up. Chapter 11s happen in business and overall the market isnt affected as long as consumer support in the long term is there. A merger of two companies in the same market can be good if it makes them more competitive within the market but not a monopoly.
No its exactly how it works. Hobbico owed Futaba alone $2.2 million in unsecured debt. Futaba will not get anything. Futaba can not even reclaim unpaid inventory sitting in Hobbico's warehouse. They're an unsecured creditor and Futaba will have to write of the $2.2 million dollar debt, not some "bank".

I've been an unsecured creditor in several bankruptcies. The unsecured creditor always gets screwed.

Just to name a few of their unsecured creditors...

Tamiya - $638,000
Associated Electrics - $354,000
Proline - $237,000
Hitec - $161,000
O.S. - $140,000

The secured creditors(banks with collateral against loans) will quickly eat up every penny of the $18 million Horizon is going to pay for this. The banks will recoup some of the their losses, but the unsecured creditors such as the ones I've listed and the employees screwed out of their ESOP will get NOTHING!
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Old 04-03-2018, 07:46 AM
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And its now official. Horizon will own Hobbico.

Bankruptcy judge OKs Horizon's purchase of Hobbico's RC business | News-Gazette.com
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Old 04-03-2018, 10:29 AM
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now we sit back and watch.
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Old 04-03-2018, 10:38 AM
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Originally Posted by Apco1 View Post
No its exactly how it works. Hobbico owed Futaba alone $2.2 million in unsecured debt. Futaba will not get anything. Futaba can not even reclaim unpaid inventory sitting in Hobbico's warehouse. They're an unsecured creditor and Futaba will have to write of the $2.2 million dollar debt, not some "bank".

I've been an unsecured creditor in several bankruptcies. The unsecured creditor always gets screwed.

Just to name a few of their unsecured creditors...

Tamiya - $638,000
Associated Electrics - $354,000
Proline - $237,000
Hitec - $161,000
O.S. - $140,000

The secured creditors(banks with collateral against loans) will quickly eat up every penny of the $18 million Horizon is going to pay for this. The banks will recoup some of the their losses, but the unsecured creditors such as the ones I've listed and the employees screwed out of their ESOP will get NOTHING!
This was my thinking. Explained in a better fashion than I wanted to take the time too.
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Old 04-04-2018, 01:00 AM
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RC is hurting as much as I've ever seen it hurt in 30+yrs of being in it. Hobbico made their bed in lots of ways over the years, though, so it's tough to feel too compassionate about the bankruptcy and losses. Brutal.
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Old 04-04-2018, 05:57 AM
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I really dough many brands will survive.. But we can all speculate.(wish).and want our favorite One to be seen again.. Ive never been owed money from work or product I supplied without cash in hand 1st..To those that have Your Lose.LOL sorry had to chuckle..I don't think RC is going Down the tube or drain .And TRAXXAS is who they be.. get over it ..
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