Bankrupt Peak Mfg.’s Assets Sold
The assets of bankrupt Canadian RV manufacturer Peak Manufacturing Inc., North Battleford, Saskatchewan, are expected to be acquired soon by Edmonton-based Winalta Inc., a company that builds manufactured homes and modular homes in Canada.
The acquisition for $6.4 million (Canadian) is subject to approval by a Canadian court, which is overseeing the disposal of assets of the Peak Group of Companies, Saskatoon, Saskatchewan.
At current exchange rates, one Canadian dollar is equivalent to 76.9 cents U.S..
Court approval is expected Friday (Nov. 21) and the transaction is expected to be finalized late next week.
The RV manufacturer’s parent company Peak Group filed for bankruptcy in September.
Peak manufactures Vanguard, Frontier, Security and Kodiak Class Cs, fifth-wheels and travel trailers from plants in North Battleford and Thetford Mines, Quebec.
“Operations of the (Peak Manufacturing’s) North Battleford manufacturing facility will not skip a beat,” said James A. Sapara, Winalta’s chairman and CEO. “This acquisition provides meaningful diversification and is anticipated to contribute to the company’s (Winalta) solid record of growth.”
Less clear is what will become of Peak’s plans to manufacturer the Class C Kodiak as the Liberty Touring Coach in the South Bend, Ind., area.
Peak Vice President Jim Baxter said he had not yet been apprised of Winalta’s plans for the South Bend project, which is in the implementation stage.
Winalta, a publicly traded company, had $61.8 million (Canadian) in sales last year.
Peak Group had $62 million (Canadian) in sales in fiscal 2003, but laid off 180 of 260 workers after filing for bankruptcy.
Technically, Winalta plans to acquire 70% of Peak Manufacturing, and investor group Intermerge Advisory Inc. intends to buy the other 30%.
Intermerge executive Blair Bondar, who has “extensive experience in the manufacturinng, wholesaling and retailing of recreational vehicles,” also will become Winalta’s vice president and COO.