A U.S. Federal Bankruptcy Court judge has approved the sale of Fleetwood's motorhome division to American Industrial Partners (AIP). Owners of Fleetwood-made motorhomes will see warranty service obligations honored by the new buyers.
The sale includes a couple of manufacturing plants, and two service facilities in Decatur, Indiana. According to published reports, it took lawyers and hour and a half to hash out how the $53 million in sale money would be distributed--and even then, there's some speculation that things still are unsettled. Deutsche Bank,
which represents note holders who converted $79 million worth of old
unsecured debt in Fleetwood to $81.4 million in new debt in December,
would get a first lien on $10.2 million set aside in a separate
account. The rest of the funds from the sale would go into Fleetwood's
cash collateral for operations.
But another secured creditor, Bank of America says they disagree with some of the figures tossed around in the negotiations. In an article appearing in Riverside, California's Press Enterprise a Bank of America representative said that a negotiated settlement amount, based on a real estate appraisal of two of Fleetwood's Decatur properties, "grossly inflated."
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