MINNEAPOLIS (AP) - Genmar Holdings Inc., the Minneapolis-based boat manufacturer founded and headed by Twin Cities businessman Irwin Jacobs, Monday filed for protection from its creditors under federal bankruptcy laws.

Jacobs said the credit collapse and weak economy have decimated sales of everything in Genmar's product line, which includes 12-foot fishing boats, runabouts for water skiing and tubing and luxury yachts for millionaires in the United States and 40 other countries. The sales decline began in 2008 but has worsened in recent months, which are typically a peak sales period for Genmar and others in the boat business.

Jacobs, who made his name buying bankrupt businesses, said he never thought this day would come for Genmar.

"Even up until the last few weeks, this is something I never even dreamt was a remote possibility," he said.

Jacobs is the largest shareholder in privately held Genmar, with about 40 percent of its stock. Other stockholders include employees and private investors, including the family of the late Carl Pohlad, a longtime business associate who was an original investor. Jacobs estimated the Pohlad family's holdings at about 15 percent.

The company's Chapter 11 petition filed in U.S. Bankruptcy Court in St. Paul listed assets of $237.5 million and liabilities of $216.5 million. Jacobs said the bankruptcy petition does not include more than $400 million in intangible assets, whose values were determined recently by Wells Fargo & Co., its lead banker. Wells Fargo and Fifth Third Bank are the only secured creditors, owed $75 million.

In court filings, Genmar also said tighter requirements from its banks propelled it into bankruptcy. "Despite restructuring steps and infusion of significant equity, the bank reduced [credit] availability," the documents said. "The bank rejected all ... proposals for making adequate capital available and continued to reduce the borrowing base."

Representatives of Wells Fargo declined to comment Monday.

Information from: Star Tribune, http://www.startribune.com