Bid for Fleetwood Segment Falls Short of Debt Load

May 19, 2009 by · Comments Off on Bid for Fleetwood Segment Falls Short of Debt Load 

Last Friday’s offer by American Industrial Partners LP for a portion of the motorhome operations of Fleetwood Enterprises Inc. is “very preliminary” and “not a done deal,” a Fleetwood spokeswoman stressed on Monday (May 18).

First reported in the Dow Jones Daily Bankruptcy Review, New York-based private equity firm AIP has offered $53 million for most of the company’s motorhome business — including five plants in Decatur, Ind. and all of its motorhome brands, according to the Riverside Press-Enterprise.

What isn’t included in the deal is the company’s manufacturing location in Riverside or any of its closed travel trailer plants. Fleetwood has also been attempting to sell its manufactured housing division.

Fleetwood has asked the court to approve an auction that would set American Industrial’s offer as the minimum bid.

In the filings Friday (May 15), American Industrial’s bid was described by a Fleetwood investment consultant as a “reasonable purchase price.”

The equity firm doesn’t run the day-to-day operations of companies it buys, and focuses on buying mid-size industrial companies that it can streamline, according to information on its website.

But much remains to fall into place to make the sale happen, stressed Heather Everett, public relations manager for Fleetwood’s RV group. Fleetwood has not “inked a deal,” as the Dow Jones publication first stated in its headline, she told RVBusiness. And the proposed sale still has some hoops to jump through.

If Fleetwood’s auction proposal is approved by the court at 1:30 p.m. Thursday, initial bids would be accepted until June 18 and the auction would take place June 22, with American Industrial’s bid the one to beat.

Fleetwood started trying to sell its RV and manufactured housing businesses Feb. 6, before it filed for bankruptcy March 10. Fleetwood contacted or heard from more than 75 companies since then. Of those, 10 met with management or visited Fleetwood’s operations.

Fleetwood Enterprises Inc. has $20.7 million in assets compared to at least $265.2 million worth of debts, according to recent financial filings the company has made in bankruptcy court. Of that, at least $183 million is money owed to unsecured creditors.

The RV and manufactured homebuilder filed for bankruptcy March 10 but hadn’t filed a comprehensive list of debts and assets until now.

Fleetwood remained the country’s largest manufacturer of Class A motorhomes in 2008, accounting for 18.6% of the market share, according to industry results from Statistical Surveys Inc. The company held a 20.4% market share the year prior.

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AIP Offers $53M for Fleetwood’s Motorized Business

May 18, 2009 by · Comments Off on AIP Offers $53M for Fleetwood’s Motorized Business 

Fleetwood Enterprises Inc. is seeking bankruptcy court approval to sell most of its motorized RV business to New York private equity firm American Industrial Partners L.P. for $53 million, subject to higher offers at auction, according to the Dow Jones Daily Bankruptcy Review.

The deal would allow Fleetwood to unload one of its two primary business units, part of the company’s plan to sell off its assets in an effort to repay creditors.

American Industrial Partners is seeking to buy five plants, additional machinery and all brands and intellectual property tied to Fleetwood’s motorized RV business, according to papers filed Friday (May 15) with the U.S. Bankruptcy Court in Riverside, Calif. The purchase would consist of a portion of Fleetwood’s intellectual and physical properties. The five plants are all located in Decatur, Ind. AIP is not offering to purchase any travel trailer property (intellectual or physical) or Fleetwood’s motorhome facility in California.

American Industrial Partners’ offer would serve as the lead bid at an auction for the unit under bidding procedures proposed by Fleetwood. A hearing on the proposed sale procedures is scheduled for Thursday.

Under the bidding rules, competing bidders would have until June 18 to submit initial offers. An auction would take place on June 22.

Fleetwood is seeking to pay American Industrial Partners a $1 million breakup fee if it’s bested at auction.

The private equity firm showed the most “serious interest” of some 75 potential buyers contacted by Fleetwood’s financial advisers, the company said in court papers. Other bids were “too low or subject to significant contingencies,” Fleetwood said.

The Riverside, Calif., company, which also produces factory-built homes, filed for Chapter 11 bankruptcy protection in March, blaming the global recession for reduced demand for its products. Weakness in the RV market has hurt Fleetwood for several years. The company has reported a net loss in each fiscal year since 2001.

At the time of its Chapter 11 filing, Fleetwood employed 3,700 people at 19 manufacturing facilities in 11 states.

The company began the process of shutting down its travel trailer business unit and is seeking a buyer for its housing division.

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