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Judge Gives Fleetwood More Time for Sale

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April 21, 2009 by   Leave a Comment

Fleetwood Enterprises Inc. has been granted more time to finalize an agreement with potential buyers.

Company officials said an agreement wasn’t imminent and would not say who the potential buyers were, except that the company continues to have discussions with several parties, according to The Press-Enterprise, Riverside, Calif.

The Riverside-based company, which filed for Chapter 11 bankruptcy protection March 10, sought more time in court documents filed Friday (April 17).

Fleetwood said it needed to delay a final hearing about its temporary financing plan “to finalize an agreement with prospective buyers.” The company added that its ability to find buyers before the final hearing could resolve issues others have had with Fleetwood’s temporary $80 million financing plan with Bank of America.

In addition to being out of town when the original hearing was scheduled to occur, the lawyer representing the case’s committee of creditors mentioned the same reason as Fleetwood’s in his original motion to delay the hearing.

The final hearing to approve Fleetwood’s financing plan has been rescheduled for April 29 at 1:30 p.m.

Monaco Coach Corp., an RV-maker that also filed for Chapter 11 bankruptcy in March, has received one suitor; truck and engine maker Navistar offered $50 million.

Jeff Kurowski, director of industry relations for the National Recreation Vehicle Dealers Associations (RVDA), said dealers hope someone will buy all or some of Fleetwood rather than risk the company being liquidated.

“I would be surprised if someone came in to buy all of it,” he said, since it would require deep pockets and an understanding that both of Fleetwood’s divisions — manufactured housing and RVs — follow the same cycles. When one is down, the other is, too, he said. “Someone would have to have a pretty good stomach for risk.”

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