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Fleetwood Enterprises Inc. has gotten preliminary approval on a $260 million loan, primarily from Bank of America, for which it agreed to use “substantially all” of its assets “except certain inventories” as collateral.

The funding package includes a $230 million three-year loan and a $30 million one-year loan.

About $80 million of the $260 million package will be used to repay notes owed to Prudential Insurance Co. of America. Fleetwood has been in violation of certain balance sheet covenants related to the Prudential notes, although Prudential has not enforced its available remedies.

Otherwise, Fleetwood has made payments on the Prudential notes on time.

More financial institutions need to join Bank of America in funding the $260 million loan package, but Fleetwood believes the deal will be finalized before July 29, the end of Fleetwood’s first fiscal quarter.

Fleetwood needs to borrow because it lost $239.5 million during the first three quarters of its fiscal year 2001, which ended on Jan. 28. The company will report another loss for its fourth fiscal quarter, which ended on April 29.

Fleetwood’s fourth fiscal quarter and full fiscal year 2001 earnings will be revealed during the first week of June.

The company also needs to borrow to pay for developing, building and marketing new RV models in order to boost sales and eventually return to profitability.