GE, McMahon’s Enter ‘Preliminary Injunction’
GE Commercial Distribution Finance and Mega RV Corp., dba McMahon’s RV, have entered into a “stipulated preliminary injunction” concerning the dealership’s alleged sale and distribution of inventory financed by GE following the closure of its Mesa, Ariz., outlet.
Parties met Wednesday (May 7) in the Central California U.S. District Court in response to GE’s request for a temporary restraining order.
The stipulated preliminary injunction states that McMahon’s will be prohibited from “transferring, liquidating, converting, encumbering, pledging, loaning, selling, concealing, dissipating, disbursing, assigning, spending, withdrawing, granting a lien or security interest or other interest in disposing of plaintiff’s collateral.”
Other parameters include:
• Parties have already agreed to an advanced surrender of certain of the collateral manufactured by Monaco Coach to occur seven days after entry of the order.
• McMahon’s shall cooperate with GE to identify the location and status of all remaining collateral.
• McMahon’s shall allow GE representatives physical access to inspect the dealer’s premises in order to inventory the collateral and to assure McMahon’s compliance with this Order.
The filing noted that the ruling “shall not be deemed or construed” as an admission of guilt by McMahon’s and that the dealer “continues to dispute the original claims.”
In the original complaint filed April 4, GE claimed that McMahon’s had an “out-of-trust” balance of just over $3.56 million.
On April 15, Camping World Inc. signed a letter of intent with McMahon’s to acquire the multilocation dealership, but the deal apparently fell through due to a dispute over “hidden” costs associated with the buyout, according to Camping World President and CEO Marcus Lemonis.