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Bankruptcy Court OK’s Fleetwood Financing

April 6, 2009 by · Leave a Comment 

Fleetwood Enterprises Inc. reported late Friday (April 3) that the U.S. Bankruptcy Court has approved orders that the company requested to support the continued operation of its motorhome and manufactured housing businesses.

The Riverside, Calif.-based manufacturer received authorization through an interim order to obtain up to $80 million in debtor-in-possession financing to supplement the company’s working capital needs, including a $65 million sub-limit for letters of credit that the company had in place prior to its Chapter 11 filing. The court authorized the debtor-in-possession financing as senior secured super-priority post-petition extensions of credit from its lenders, led by Bank of America N.A. as agent. An additional hearing will be held on April 21 regarding a final order on the company’s debtor-in-possession financing.

Fleetwood also announced that its requests to pay pre-petition dealer and retailer sales incentives and warranty service claims for Fleetwood motorhomes and manufactured homes were approved. Under Chapter 11, the company is permitted to continue to pay for approved post-petition warranty service that is performed on Fleetwood motorhomes and manufactured homes and to pay for sales incentives earned on or after March 10 in the ordinary course of business.

Additional requests made since the company voluntarily filed for Chapter 11 on March 10 have also been approved. The orders, entered by Judge Meredith A. Jury of the Central District of California in Riverside, include:

  • Authorization for Fleetwood to access its pre-existing cash management systems and its cash collateral.
  • Approval to pay outstanding pre-petition employee expenses and workers’ compensation claims.
  • Authorization to pay certain common carriers and other vendors for pre-petition amounts outstanding. The company has submitted a motion requesting permission to pay certain additional vendor claims, which has not yet been heard by the court.
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