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Court Approves Monaco Sale To Navistar Inc.
Posted By Bob Ashley On May 23, 2009 @ 6:19 pm In Breaking News | 2 Comments
A federal judge on Friday approved the sale of Monaco Coach Corp.‘s recreational vehicle assets to Navistar Inc., according to bizjournals.com
The $52 million deal is expected to close in early June.
Coburg, Ore.-based Monaco (Pink Sheets: MCOAQ) in March filed for Chapter 11 bankruptcy protection and laid off the majority of its 2,225 remaining employees. It had earlier been looking for buyers for its RV manufacturing operations and motorhome resorts business.
On April 27 the company announced it had an accepted an offer from Warrenville, Ill.-based Navistar that includes certain manufacturing facilities in Indiana and Oregon, as well as all brands, intellectual property, inventories, and equipment relating to the company’s motorized and towable recreational vehicle segments.
Navistar (NYSE: NAV) is manufacturer of commercial and military vehicles, as well as diesel engines and related services. It has $15 billion in annual sales and a market cap of $2.4 billion.
Monaco at the time warned that the proceeds of the sale will cover payments to creditors, but it won’t likely result in any additional funds being distributed to shareholders.
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