I just completed a conversation with a Cannondale representative who confirmed that Cannondale has filed for Reorganization under Chapter 11. Their current plan is to continue operations. "The Pegasus Group" is the current financial institution backing the reorganization. This means several things to consumers:
1. Cannondale has divested from its unprofitable Motorsports Division, allowing the profitable bicycle operation to continue under reorganization and new capitalization under private status.
2. Current product will be produced and warranties will be honored without interuption.

A press release will be issued tomorrow with official information. I felt it was important and responsible to release what information we heard from Cannondale to contain the inevitable generation of inaccurate information.

My opinion is that Cannondale will continue and regain its financial health as a private bicycle company. IMHO the motorcycle thing was a stupid move and now they are paying for it. I think (guess...) this will be similar to the United Airlines bancruptcy. Hopefully, two years from now this will simply be a dark spot on the company history.

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Tom Demerly
The Tri Shop.com