Elkhart, Ind.-based Forest River Inc. has agreed to amend “certain financial obligations” in its purchase agreement with Coachmen Industries Inc. concerning the acquisition of most of the assets of Coachmen’s RV Group, finalized Dec. 26.
The amended agreement, filed with the Securities and Exchange Commission (SEC) on March 3, will reduce Coachmen’s immediate receivables payment obligations to Forest River and “minimize the effect on its liquidity.”
Forest River has agreed to accept a fully collateralized short-term note from Coachmen that will allow the company to pay these obligations over time.
The note will be paid from ongoing operations and the continuing collection of receivables, as well as through other available funding sources, and will be paid in full by the Coachmen on or before March 27.
As of March 2, the outstanding balance on the note is just over $2.3 million.
In addition, the filing stated “notwithstanding the execution of the note and the resulting favorable impact on Coachmen’s liquidity, it continues to pursue a long-term relationship with a financial institution.”