Fleetwood Negotiates for Bankruptcy Financing
Fleetwood Enterprises Inc. is negotiating with Bank of America for bankruptcy financing and hopes to present a plan to a bankruptcy court as early as next week, according to court documents.
Reuters reported that company spokeswoman Rivian Bell was not able to specify the amount of debtor-in-possession financing being discussed. Such financing is a loan made to a company to help it fund operations while it restructures under bankruptcy protection.
Fleetwood, which also makes manufactured housing, has asked the court to approve emergency funding to pay workers’ compensation benefits to third-party administrators, according to the company’s filing with the Bankruptcy Court for the Central District of California in Riverside, Calif., on Monday. A hearing was scheduled for today (March 17).
Fleetwood filed for bankruptcy on March 10, hurt by high fuel prices and the U.S. economic recession that had limited sales of its recreational vehicles. The U.S. housing market decline has also slashed demand for its manufactured homes.
It is shuttering its travel trailer division and seeking a buyer for its motorhome and manufactured housing units.
“There has been outreach to strategic and financial buyers and there has been interest,” said Bell, adding that she was unable to clarify further.