A hearing is set for Friday (April 17) on motions filed last week in U.S. Bankruptcy Court in Delaware by Coburg, Ore.-based Monaco Coach Corp. for permission to conduct an auction May 8 of its resorts in Indio and La Quinta, Calif., Las Vegas, Nev., Bay Harbor, Mich., and Naples, Fla.
The La Quinta property is raw land purchased in expectation of developing a resort. The Indio and Las Vegas resorts are fully developed and Monaco owns interests only in some of the remaining lots, according to The Register-Guard, Eugene, Ore.
Monaco has been trying to sell the resorts since last December, according to the company’s motion. The company hired investment banking firm Avondale Partners, which to date has contacted more than 75 prospective buyers. Of those, 30 have signed confidentiality agreements, but none have submitted bids.
Monaco wants to conduct the auction with bids on any combination of its five resorts.
Monaco has been in the resort business since about 2002, when it bought properties in Indio, Las Vegas and Naples from Outdoor Resorts.
Monaco spokesman Craig Wanichek said last year that the company got into the resort business because the owners of its luxury motorhomes want to go on vacation to places that have the amenities they desire, which include tennis courts, swimming pools, golf courses, spas and restaurants.
Monaco filed for Chapter 11 bankruptcy last month and laid off 2,200 local employees. Two weeks ago, the company announced it had found a possible buyer in Navistar International Corp. Navistar signed a non-binding letter of intent to buy some of Monaco’s core RV assets for up to $50 million.
Under a timeline established by U.S. Bankruptcy Judge Kevin Carey, Monaco has until April 16 to file motions to accommodate a sale or establish sale procedures, until May 13 to conduct a public auction and until June 1 to consummate a sale.
Should the deal go through, Navistar would own all of Monaco’s RV brand names, its closed factories in Coburg and Indiana, plus equipment and intellectual property.