Community Forums

Pusherpilot · 03-26-2009, 10:41 AM

Latest word.........................
here

MonacoMama · 03-26-2009, 10:43 AM

... and you will also find info from:
RV Business
Thursday, March 26, 2009

Monaco May Reveal $50 Million Suitor Today

Monaco Coach Corp., which terminated 2,000 employees and filed for bankruptcy protection earlier this month, has received a letter from a large company interested in buying the Coburg, Ore.-based RV maker for $50 million.
The proposed purchase plan by the unnamed company is outlined in parts of a 60-page document filed Wednesday (March 25) by Monaco in U.S. Bankruptcy Court in Delaware, according to the Register-Guard, Eugene, Ore. The overall document is a routine motion, asking the court for permission to use money from sales of RVs to pay the bills and keep operating at a scaled-back level.....story continued here

MM

Forest Grump · 03-26-2009, 11:37 AM

Monaco Coach receives $50M offer for main assets
By DAN STRUMPF – 1 hour ago
NEW YORK (AP) — Monaco Coach Corp., which filed for Chapter 11 bankruptcy protection earlier this month, declined to name the potential buyer of its RV manufacturing business following its disclosure that a "major public company" ...the rest of the story here.....

boge513 · 03-26-2009, 03:33 PM

Navistar has issued a press release about their intent to purchase certain Monaco assets.
http://media.navistar.com/index.php?s=43&item=256

T.J.

Up N Flames · 03-26-2009, 03:41 PM

Same on Monaco Website
http://phx.corporate-ir.net/phoenix....0418&highlight=

Route 66 · 03-26-2009, 03:44 PM

Still a lot of details to be worked out before it's a done deal.

I hope it works out well for all involved.

BHEMOTH · 03-26-2009, 03:58 PM

A Letter of Intent has been executed between Monaco and Navistar.

http://www.prnewswire.com/cgi-bin/st...04995651&EDATE=

Jim Stewart · 03-26-2009, 04:17 PM

Looks like this will eventually happen.

Look for a shareholder lawsuit spurred by Prescott Capital to hold it up for awhile. Listed assets exceed liabilities and Navistar is getting it for a song (large discount). They will probably have to sweeten the pie a little to get the deal done and settle the certain coming shareholder lawsuits. You can't just ask shareholders to bend over so that they get a deal.

Now, what does Navistar do with the bus now that they caught it. Obviously the market will not improve quickly and how they choose to handle warranty could get touchy. They clearly state that they are purchasing assets, not liabilities. Warranty is a liability, dealer returns are a liability, Cobra was a liability, disgruntled returning employees may be a hugh liability!

I would expect Oregon to close and see the re-opening of the Indiana Facilites, makes sense for both Monaco and Navistar.

moisheh · 03-26-2009, 04:48 PM

Although there are certainly more details to come it looks like I will have to eat crow on this one. The meat tastes like chicken but the feathers are hard to swallow! I dont care about warranty to existing owners but factory support would sure be great!

Darryl · 03-26-2009, 04:53 PM

Jim, I agree with you. Ordinarily it would be unlikely they would take the warranty liabilities, although there may be some political reasons (owner loyalty, goodwill) they might take them. It would certainly go a long way towards getting todays owners to purchase a future Monaco product. It will be real interesting to see what happens in the next month.

Route 66 · 03-26-2009, 05:04 PM

I agree that it would be well worth their while to accept warranty liability if they want any repeat sales, but all bets are off in cases like this.

cb5300 · 03-26-2009, 09:09 PM

Quote:

Originally Posted by moisheh

I dont care about warranty to existing owners

You may not care,

but I'm sure that existing owners with warranty issues care a heck of a lot....I for one have a huge warranty claim issue right now, and I don't think I should have to write a huge check to cover Monaco's poor workmanship.

......

Jim Stewart · 03-26-2009, 09:34 PM

Charles, I for one hope that you do get taken care of for your warranty issues. In reality, the warranty coverage may be small based on the volume of sales over the last 12 months. Most units sold would already be out of warranty. The problem with them taking the warranty liability is that is gives owners and dealers priority as unsecured creditors and the court may not let them pick and choose who gets priority. The courts usually divide any remaining money between all the unsecured creditors on a percentage basis (Cents on the Dollar).

The Shadow · 03-26-2009, 09:39 PM

Quote:

Originally Posted by Jim Stewart

Charles, I for one hope that you do get taken care of for your warranty issues. In reality, the warranty coverage may be small based on the volume of sales over the last 12 months. Most units sold would already be out of warranty. The problem with them taking the warranty liability is that is gives owners and dealers priority as unsecured creditors and the court may not let them pick and choose who gets priority. The courts usually divide any remaining money between all the unsecured creditors on a percentage basis (Cents on the Dollar).

I doubt that this would be an issue. The court will approve or reject the deal and what the buyer choses to do with the warranty obligations LATER will not be an issue for the court.