Holley Performance Products has emerged from Chapter 11 bankruptcy for the second time in three years after transferring ownership of the company to holders of its debt.

The company, which makes high-performance carburetors, fuel pumps and fuel injection systems cut its debt by nearly US$60m and arranged new credit agreements with existing senior lenders that bolstered its liquidity.

According to court documents, the bankruptcy does not change the company’s ownership dramatically.

Holley, which is headquartered in Bowling Green, Kentucky, is a major supporter of drag racing and NASCAR racing. It said in court documents that sales fell to US$90.2m in 2009 from US$112m in 2008 when it came out of bankruptcy.

After Holley’s last bankruptcy, the company had planned to focus on expanding its emissions control business. However this went into decline when its major customer discontinued a line of truck engines.