EPDM Coatings
Desert Valley RV Park
RV LED Bulbs offer Sponsored by Spotless Water Systems rvupgradestore.com Composet Products EVDO

Author Topic: Fleetwood files bankruptcy  (Read 13234 times)

Fleetwood files bankruptcy
« on: March 10, 2009, 10:10:11 AM »
Fleetwood:

NEW YORK, March 10 (Reuters) - Fleetwood Enterprises Inc (FLTW.OB), a maker of recreational vehicles and manufactured housing, has filed for bankruptcy and will close its travel trailer business, the company said on Tuesday.

Fleetwood, which filed for Chapter 11 bankruptcy protection in California, will seek a buyer for its motor home and manufactured housing units and will continue to operate those businesses during the search process, the company said.

International operations are not included in the bankruptcy filing.

Fleetwood, hit by successive waves of higher fuel prices and a recession that has cut sales of its vehicles, has been trying to restructure its operations for three years.

"We will use the Chapter 11 process to more rapidly restructure our overhead, pursue potential buyers, and definitively resolve our debt issues," President and Chief Executive Officer Elden Smith said in a statement.

Fleetwood said it believes it has sufficient cash to operate in the immediate term. It is in "advanced discussions" with its senior secured lenders for new, debtor-in-possession financing to supplement existing working capital, it said.

On March 5, Coburg, Oregon-based Monaco Coach Corp (MCOAQ.PK), a maker of motorized and towable recreational vehicles, filed for Chapter 11 bankruptcy. (Reporting by Chelsea Emery; editing by John Wallace)



YIKES!

John Canfield

  • Forum Staff
  • ---
  • *
  • Posts: 8508
    • Jane and John's Internet Home
Re: Fleetwood files bankruptcy
« Reply #1 on: March 10, 2009, 10:53:47 AM »
More detail...

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

News Release Issued: March 10, 2009 09:04 AM ET
 
Fleetwood Enterprises, Inc. Files Voluntary Petitions for Chapter 11
Protection; Motor Home, Housing Businesses Will Continue Operations

Travel Trailer Operations Will Close

RIVERSIDE, Calif., March 10 /PRNewswire-FirstCall/ -- Fleetwood Enterprises,
Inc. ("Fleetwood"), a leading producer of recreational vehicles and
manufactured housing, today filed voluntary Chapter 11 petitions for itself
and certain operating subsidiaries in the U.S. Bankruptcy Court for the
Central District of California in Riverside. The filings do not include any
of the company's foreign or non-operating entities.

Fleetwood's motor home and manufactured housing businesses will continue to
operate while the company seeks buyers for these business units. While
Fleetwood believes it has sufficient cash to operate its businesses in the
immediate term, the company is also in advanced discussions with its senior
secured lenders for new, debtor-in-possession (DIP) financing to supplement
existing working capital. As of Jan. 25, 2009, the company had bank cash of
approximately $23.0 million, excluding cash remaining in non-filing
entities, principally its captive insurance subsidiary.

Filing at this time preserves Fleetwood's right to revisit its Dec. 12, 2008
Exchange Offer, in which the company issued its 14% senior secured notes.
Under Chapter 11, the company has a 90-day period from the Offer's effective
date in which to revisit the terms; that period will expire shortly. Terms
of the senior notes effectively restricted the company from seeking
investment in its businesses in view of subsequent deterioration in the
market.

The filing also facilitates the closing of Fleetwood's travel trailer
division, which the company has commenced. This division accounted for
losses of $65.3 million in 2007 and $16.8 million in 2008. The division
closing affects three manufacturing facilities and two service facilities
employing approximately 675 people. The company is also laying off an
additional 65 corporate associates.

"Although we made substantial progress in restructuring this division and
improved the product offering, current market conditions proved too severe
to continue the turnaround," stated Elden L. Smith, Fleetwood's president
and chief executive officer. "We appreciate the past support of the travel
trailer dealers and our associates."

Today's events follow three years of restructuring that management undertook
in the face of worsening market conditions and, more recently, unprecedented
credit restrictions affecting both dealers and customers. Management's
actions included selling two non-core businesses, restructuring and
decentralizing operations, reducing headcount company-wide by more than 70%,
and adding new distribution points and a modular division. Despite these
efforts, however, management determined that a Court reorganization would
offer the best means of addressing the company's existing debt structure and
ongoing losses in travel trailers, which cannot be supported in the current
economy.

"We will use the Chapter 11 process to more rapidly restructure our
overhead, pursue potential buyers, and definitively resolve our debt
issues," Mr. Smith said. "Fleetwood is one of the most widely recognized
names in our industries, with strong market share, an extensive dealer
network and enthusiastic customer support. As important as these assets are,
we must take additional steps in response to today's deepening economic
challenges.

"We appreciate the support of our loyal dealers and customers. We want to
assure them that we intend to continue doing business in motor homes and
manufactured housing while we complete the processes before us. We will work
with our dealers to support the continued sales of Fleetwood motor homes and
manufactured homes."

Mr. Smith went on to say that "The RV industry has sound long-term
prospects, as RVers remain faithful to the lifestyle, and we anticipate a
strong rebound when the financing environment stabilizes and consumer
confidence improves. In our manufactured housing business, we see growth
opportunities that arise from positive demographic trends, the growing need
for affordable housing in this country, and commercial modular applications,
particularly for the military which represents an important segment of our
market. We will be able to compete more effectively now that financing
advantages of site-built homes over manufactured homes have narrowed. We are
taking steps to ensure our businesses will be ready when the current markets
turn up again."

Fleetwood has filed first-day motions that ask the Court to approve, among
other things, payment of employee wage and benefit charges that were
incurred before the petition was filed, and the continuation of certain
sales incentive programs, warranty service, cash collateral, and cash
management systems. The company is working with its largest national lender,
Bank of America, to continue to provide competitive RV dealer and consumer
financing during the reorganization period.

"The vast majority of our suppliers and dealers should see no disruption in
our business," Mr. Smith emphasized. "We will continue to support our
current and future product development and manufacturing."

The company's consolidated balance sheet as of Oct. 26. 2008, showed assets
of $558.3 million and liabilities of $518.0 million. For the last fiscal
year, the company showed annual revenues of approximately $1.7 billion. At
the time of the filing, there were no defaults and no outstanding borrowings
on the company's secured credit facility other than $61.7 million of undrawn
letters of credit to support the company's performance of certain contracts
and obligations. In addition, the company had structured debt consisting of
$81.4 million in aggregate principal amount of the 14% senior secured notes
and $151.3 million of 6% trust preferred securities, respectively.

The company expects to incorporate the impact of the filing on its fiscal
third quarter results and file its Form 10Q as soon as it is completed.

Fleetwood is being advised by its legal counsel, Gibson Dunn & Crutcher LLP;
its investment banker, Greenhill & Co., LLC; and its financial advisor, FTI
Consulting, Inc.

Founded in 1950, Fleetwood Enterprises, Inc. and its various subsidiaries
produce, distribute, and service recreational vehicles and manufactured
housing. The company is dedicated to providing high-quality, innovative
products that offer exceptional value to customers. Fleetwood continues to
employ more than 3,000 people in 15 plants located in 10 states. Fleetwood's
products are primarily marketed through extensive independent dealer
networks throughout the United States and Canada. The company is
headquartered in Riverside, Calif.

Additional information about the company's reorganization may be found
online at www.kccllc.net/fleetwood or the Investor Relations/News section of
www.fleetwood.com. For the next few days, a call center will be open from
9:00 am to 5:00 pm, Pacific Time, at (888) 288-1501.

    Contact:  The Abernathy MacGregor Group
              Rivian Bell or Sydney Rosencranz
              rlb@abmac.com; spr@abmac.com
             (213) 630-6550; (888) 477-4319 (24/7)
SOURCE: Fleetwood Enterprises, Inc.

Web site: http://www.fleetwood.com/
 
--John
2005 Horizon 40AD, 2006 Jeep Rubicon Unlimited
Datastorm - F1
Our location
Our blog
Our web site
Our weather

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #2 on: March 10, 2009, 02:42:08 PM »
Major RV manufacturers are dropping like flies!

However somebody on the American Coach Owners group reported they were on the phone with the AC Parts Dept today and it is still business as usual there. It remains to be seen whether Fleetwood's motorhome divisions will come out of this alive, though perhaps part of another company.
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

scottydl

  • Admin assist
  • ---
  • *
  • Posts: 4941
  • Central IL
Re: Fleetwood files bankruptcy
« Reply #3 on: March 10, 2009, 02:47:49 PM »
I remember not long ago that someone here mentioned Fleetwood would likely ride out the economic storm, given their prominence in the marketplace.

Apparently not so.  :-\

There are a LOT of inconsistencies in RV design and manufacture, when comparing makes/models to other makes/models.  With any luck, these closings will eventually result in a more centralized RV industry that can do everything more efficiently (which includes serving the customer).  Similar to the 1970's snowmobile company meltdown recently mentioned in another thread.
Scott, wife, 3 boys... and the dog
1994 Thor Residency 3500 owned 2007-2012
Now looking for the next perfect RV...

ArdraF

  • ---
  • Posts: 7348
Re: Fleetwood files bankruptcy
« Reply #4 on: March 10, 2009, 03:05:35 PM »
Another sad day for the RV industry.  Thanks for letting us know.

ArdraF
ArdraF
:D :D

Dave Stringham

  • ---
  • Posts: 344
Re: Fleetwood files bankruptcy
« Reply #5 on: March 10, 2009, 03:14:36 PM »
I remember not long ago that someone here mentioned Fleetwood would likely ride out the economic storm, given their prominence in the marketplace.


thats what I thought I read, Fleetwood had no debt or something along those lines and would probably survive
Dave Stringham
Monaco Executive (The Luv Shack)

rjf7g

  • ---
  • Posts: 1095
Re: Fleetwood files bankruptcy
« Reply #6 on: March 10, 2009, 03:25:21 PM »
Well, I am not worried about my small investment in Fleetwood stocks.  I am more worried about the men and women who are without jobs because of this.
2007 Gulf Stream Innsbruck 36FRS
2006 Palomino Puma 27FQ Bunkhouse
2006 Yamaha SX230 with Cobra Jet Steering
2003 Club Car GS

wkndfun

  • ---
  • Posts: 200
Re: Fleetwood files bankruptcy
« Reply #7 on: March 10, 2009, 03:26:58 PM »
It hurting all of us. People ask me how is business and all I can say is "the lights are still on, so I'm counting my blessings". I hope it turns around soon. (I own a remodeling firm)
« Last Edit: March 10, 2009, 03:45:12 PM by wkndfun »
Glenn and Tamie
Richmond VA.
1999 Winnebago Adventurer 34V diesel

Ron

  • Former Staff
  • ---
  • *
  • Posts: 18115
Re: Fleetwood files bankruptcy
« Reply #8 on: March 10, 2009, 03:27:27 PM »
More bad news.  Will it ever stop?
Ron & Sam-home is where we park it. Currently located   HERE

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #9 on: March 10, 2009, 03:29:41 PM »
Fleetwood has a huge debt load, which they recently had to refinance at highly expensive terms.  You may have been thinking of Winnebago which has no debt to speak of (according to their annual report).   Newmar, who is privately owned, is also reputed to have little or no debt.
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

davemittan

  • ---
  • Posts: 424
Re: Fleetwood files bankruptcy
« Reply #10 on: March 10, 2009, 03:38:51 PM »
Quote
"Fleetwood's motor home and manufactured housing businesses will continue to operate while the company seeks buyers for these business units."

Could Thor be a potential buyer?

Just a thought......

Ron

  • Former Staff
  • ---
  • *
  • Posts: 18115
Re: Fleetwood files bankruptcy
« Reply #11 on: March 10, 2009, 03:39:24 PM »
Could Thor be a potential buyer?

Just a thought......

Frankly speaking I sure hope not.
Ron & Sam-home is where we park it. Currently located   HERE

wkndfun

  • ---
  • Posts: 200
Re: Fleetwood files bankruptcy
« Reply #12 on: March 10, 2009, 03:47:12 PM »
Fleetwood has a huge debt load, which they recently had to refinance at highly expensive terms.  You may have been thinking of Winnebago which has no debt to speak of (according to their annual report).   Newmar, who is privately owned, is also reputed to have little or no debt.

I'm glad Winnebago lookd good to make it.....
Glenn and Tamie
Richmond VA.
1999 Winnebago Adventurer 34V diesel

davemittan

  • ---
  • Posts: 424
Re: Fleetwood files bankruptcy
« Reply #13 on: March 10, 2009, 04:44:01 PM »
Frankly speaking I sure hope not.

Same here!

John Canfield

  • Forum Staff
  • ---
  • *
  • Posts: 8508
    • Jane and John's Internet Home
Re: Fleetwood files bankruptcy
« Reply #14 on: March 10, 2009, 04:55:33 PM »
The bad news for the 'survivors' (Winnebago, Thor, Newmar, Tiffen, ?) is the market will be flooded with bargain-basement units for sale.  They need revenue to survive.
--John
2005 Horizon 40AD, 2006 Jeep Rubicon Unlimited
Datastorm - F1
Our location
Our blog
Our web site
Our weather

Mike and Sherrie in VA

  • ---
  • Posts: 280
Re: Fleetwood files bankruptcy
« Reply #15 on: March 10, 2009, 05:50:57 PM »
It hurting all of us. People ask me how is business and all I can say is "the lights are still on, so I'm counting my blessings". I hope it turns around soon. (I own a remodeling firm)

I do computer consulting and repair for businesses.  We're closing the main office and switching to a home-based business model in a couple of months to cut back on as much overhead as possible.  The problems that we experience are that we stay very busy but customers are becoming extremely slow to pay.  That, and the new computer sales to businesses have dried up almost completely, which kills revenue from the labor involved in setting them up.  At least thus far I've managed to keep employees and closing up the office isn't really a problem since the work is more consulting and field service than a storefront, but yes, even with being busy everybody seems to be hurting.

I have a job and haven't been forced to cut staff, so I am not going to complain.
1999 Fleetwood Southwind Storm 30H

wkndfun

  • ---
  • Posts: 200
Re: Fleetwood files bankruptcy
« Reply #16 on: March 10, 2009, 07:56:00 PM »
Yes I too am thankful for what I do have.....hope to be able to keep what I have.
Glenn and Tamie
Richmond VA.
1999 Winnebago Adventurer 34V diesel

S J Strait

  • ---
  • Posts: 257
  • 2004 ford f250 deisel 27' 2007 freedom spirit
Re: Fleetwood files bankruptcy
« Reply #17 on: March 11, 2009, 06:24:58 AM »
Any one who has a roof over there head and is able to keep food on the table and pay all of the bills and still keep some toys are very lucky these days.
Steve,Lisa and the rest of the Strait gang.
The Adirondacks park is our back yard.

Mc2guy

  • ---
  • Posts: 724
  • Whoso would be a man
Re: Fleetwood files bankruptcy
« Reply #18 on: March 11, 2009, 07:45:35 PM »
I feel for the employee's, but this seemed to be a foregone conclusion when the market dropped out.  Fleetwood is (was) carrying over $300MM in debt.  With that kind of debt to service, a loss of cash flow like all manufacturers are seeing is a death sentence.  I will be frankly surprised if Fleetwood is able to restructure and re-emerge as an ongoing concern.  Credit is insanely tight and no one is offering debtor in possession financing right now.  I am guessing they will liquidate on their own terms in order to consolidate and focus on manufactured homes.
Christian, Jenn, Holden, and Emerson
Rigless for now...

BryanH

  • ---
  • Posts: 5
Re: Fleetwood files bankruptcy
« Reply #19 on: March 11, 2009, 10:21:41 PM »
Major RV manufacturers are dropping like flies!

However somebody on the American Coach Owners group reported they were on the phone with the AC Parts Dept today and it is still business as usual there. It remains to be seen whether Fleetwood's motor-home divisions will come out of this alive, though perhaps part of another company.
The MH division will end up being purchased, But I do not see the Motor-home division being traded/bought.
There is no money out there, My manufacture (Thor) reported a 20% loss last quarter, As it sits they are the strongest in the market currently and in no way are they positioned to expand. :-\
Fleetwood going under will have a strong initial impact on the scene. As we all know, Banks will not loan on any manufactures product whom is not currently manufacturing.
I have been in the business for 11 years now and am getting more and more concerned about the immediate future of this life style. >:(

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #20 on: April 07, 2009, 08:34:49 AM »
Fleetwood stock is up 45% (still only pennies, though) on the strength of this good news from the bankruptcy court.

[Press release from Fleetwood follows]

RIVERSIDE, Calif., April 3 /PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. ("Fleetwood"), a leading producer of recreational vehicles and manufactured homes, today reported that the U.S. Bankruptcy Court has approved orders that the company requested to support the continued operation of its motor home and manufactured housing businesses.

 
On April 1, 2009, Fleetwood received authorization through an interim order to obtain up to $80 million in Debtor-in-Possession ("DIP") 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 DIP 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, 2009, regarding a final order on the company's DIP financing.

 
Fleetwood also announced that its requests to pay pre-petition dealer and retailer sales incentives and warranty service claims for Fleetwood motor homes 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 motor homes and manufactured homes and to pay for sales incentives earned on or after March 10, 2009, in the ordinary course of business.


Additional requests made since the company voluntarily filed for Chapter 11 on March 10, 2009, 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.



Copies of the entered orders are available electronically at www.kccllc.net/fleetwood.
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

gmsboss1

  • ---
  • Posts: 855
Re: Fleetwood files bankruptcy
« Reply #21 on: April 07, 2009, 08:57:47 AM »
Gary --

All that does indeed sound good, but do you have a link to an English translation? ??? ;) :D

Or, as my grandsons and their friends might say, "Like, what does that mean, Dude?"

Don
Don and Mary Ann (Pelicanlady) Nesbitt
Cary, NC
2007 Fleetwood Excursion 40X
2012 Jeep GC Overland 4x4 Hemi Toad
Life is not measured by the number of breaths we take, but by the number of moments that take our breath away!

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #22 on: April 07, 2009, 09:28:12 AM »
It basically means that they can continue business pretty much as usual while in bankruptcy, paying their bills and employees.

The Debtor In Possession financing thing means they can probably obtain more working capital loans. Without that provision, nobody would lend money to a firm in bankruptcy because any new loan would have very low priority for repayment. With it, the new loan gets top priority for repayment, reducing the lendor's gamble substantially. It sounds like Bank Of America is  working with them on the DIP financing needs and  hopefully the court order will clear the way for for some badly needed working capital.
« Last Edit: April 08, 2009, 05:47:45 PM by RV Roamer »
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

gmsboss1

  • ---
  • Posts: 855
Re: Fleetwood files bankruptcy
« Reply #23 on: April 07, 2009, 10:50:26 AM »
Thanks, Gary
Don and Mary Ann (Pelicanlady) Nesbitt
Cary, NC
2007 Fleetwood Excursion 40X
2012 Jeep GC Overland 4x4 Hemi Toad
Life is not measured by the number of breaths we take, but by the number of moments that take our breath away!

elkhartjim

  • ---
  • Posts: 101
Re: Fleetwood files bankruptcy
« Reply #24 on: April 08, 2009, 12:15:55 PM »
Its a shame GM can't do this.  I guess its easier to get free money.
Jim & Judy
38' Bounder DP
2005 Jeep Wrangler Sport

ArdraF

  • ---
  • Posts: 7348
Re: Fleetwood files bankruptcy
« Reply #25 on: April 08, 2009, 06:01:48 PM »
Quote
Its a shame GM can't do this.

They might do that yet.  I was reading yesterday that they're going to try to meet the government's next deadline, but the backup plan is to file for Chapter 11 if they can't.

ArdraF
ArdraF
:D :D

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #26 on: May 19, 2009, 08:16:19 AM »
Fleetwood announced today that AIP has bid $53M for all the Fleetwood motorhome brands and the production facilities in Decatur, IN (5 plans) plus all associated intellectual property and tools. Fleetwood diesel coaches are currently built in Decatur but the gas chassis lines are built in California, so apparently some brands and related tooling would either be moved to Decatur or be dropped from the product line. The offer has been submitted to the bankruptcy court and an auction proposed for 6/22/09.

http://www.rvbusiness.com/2009/05/aip-offers-53m-for-fleetwoods-rv-division/
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #27 on: May 29, 2009, 02:41:35 PM »
It is reported that the $53M bid from American Industrial Partners (AIP) has been approved by the bankruptcy court and will be the stalking horse for any other bid. If no other bids are received (and nobody else seems to be knocking on the door), that's the way the deal will go down. The AIP bid is for the motorhome production facilities in Decatur, IN, and all intellectual property and tooling associated with motorhome production.

Fleetwood also is selling its military housing operation to housing giant Clayton Homes, a subsidiary of Berkshire Hathaway.

For more info see:
http://www.decaturdailydemocrat.com/content/view/161890/1/1/0/
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL

Mike (ex-f-221)

  • ---
  • Posts: 389
Re: Fleetwood files bankruptcy
« Reply #28 on: June 05, 2009, 03:09:26 AM »
More about this:
 
"American Industrial Partners Capital Fund IV, LP, of New York offered $53 million for the most of the motorhome division. The bankruptcy court has approved AIP's proposal but the purchase cannot be formalized until the completion of the bidding procedure later in June."
 
Read the complete article
Mike Muellner
Bremerhaven, Germany

Gary RV Roamer

  • Forum Staff
  • ---
  • *
  • Posts: 43606
  • We're on the road again...
Re: Fleetwood files bankruptcy
« Reply #29 on: June 20, 2009, 04:11:38 PM »
The bid by AIP for Fleetwood's motorhome business has held up and it appears there will be a new coach manufacturing company based in Decatur, IN. No details yet but folks in Decatur are happy and hoping that at least some of them will get back to work this summer.

More info here:
http://www.rvbusiness.com/2009/06/aip-bid-for-fleetwood-operations-in-indiana-holds-up/
Gary
--------------
Gary Brinck
2004 American Tradition
2007 GMC Acadia
Homebase: Ocala National Forest, FL