Monaco Coach Corporation Signs Non-Binding Letter of Intent With Navistar, Inc.
COBURG, Ore., March 26 /PRNewswire-FirstCall/
-- Monaco Coach Corporation (Pink Sheets: MCOAQ) is pleased to announce that the Company has signed a non-binding letter of intent with Navistar, Inc. with respect to a proposed transaction in which Navistar would acquire certain assets and assume certain liabilities primarily associated with the Company's recreational vehicle manufacturing business. Navistar, with nearly $15 billion in annual sales, is a leading global manufacturer of commercial vehicles, military vehicles, diesel engines and related parts and services. Monaco Coach Corporation is one of the nation's leading recreational vehicle manufacturers.
The letter of intent contemplates that Monaco and Navistar will work to sign a definitive asset purchase agreement during early April. Following the completion of due diligence and the bankruptcy court approval process, including the auction process, the parties intend to close the transaction shortly after obtaining the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11, authorizing the transfer of purchased assets to Navistar.
Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.
"We look forward to working with Navistar to complete this transaction and ultimately become a part of one of the nation's most respected companies. This is a great opportunity for our employees, dealers, suppliers and the communities in which we operate. We look forward to continuing the Monaco Coach brands and our legacy of producing quality and innovative recreational vehicles for our owners," stated Kay Toolson, Chairman and CEO of Monaco Coach Corporation.
About Monaco Coach Corporation:
Monaco Coach Corporation, a leading national manufacturer of motorized and towable recreational vehicles, is ranked as the number one producer of diesel-powered motorhomes. Dedicated to quality and service, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations.
Headquartered in Coburg, Oregon, with manufacturing facilities in Oregon and Indiana, the Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names. The Company operates motorhome-only resorts in California, Florida, Nevada and Michigan.
Monaco Coach Corporation is listed on the Pink Sheets under the symbol "MCOAQ". The Company filed for Chapter 11 bankruptcy relief on March 5th in the District of Delaware.
Safe Harbor Statement:
This press release contains or may contain forward-looking statements, including without limitation statements regarding (i) the execution of a definitive asset purchase agreement, (ii) obtaining approval of the transaction by the bankruptcy court, (iii) closing of the transaction and (iv) the timing of these events. These forward-looking statements are subject to various risks and uncertainties, including without limitation (i) the ability of the parties to complete due diligence and negotiate and execute a definitive asset purchase agreement, (ii) the ability of Monaco to obtain interim debtor-in-possession financing sufficient to allow the Company to complete the transaction, (iii) the possible entry of a third party bidder into the bankruptcy process and (iv) the refusal of the bankruptcy court to approve the sale, together with those items more fully described in Monaco's filings with the Securities and Exchange Commission. "Additionally, Monaco cautions that its shareholders should not assume, if the transaction with Navistar is consummated, that any proceeds ultimately available to the Company from the transaction and from other potential asset sales that may occur will be sufficient, after payments to creditors, to result in any distribution to the shareholder of Monaco."
The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.
SOURCE Monaco Coach Corporation
CONTACT: Craig Wanichek of Monaco Coach Corporation
Web Site: http://www.monaco-online.com