As part of its voluntary bankruptcy filing Thursday (Narch 5), Coburg, Ore.-based Monaco Coach Corp. said it was negotiating with its lenders to obtain “debtor-in-possession” financing – a special kind of financing arranged by a company while in Chapter 11 bankruptcy.
The Register-Guard reported that such financing usually has priority over existing debt, shareholders equity and other claims. In the meantime, Monaco said it expects to continue a line of credit on a cash collateral basis.
In Thursday’s statement announcing the filing, Chairman and CEO Kay Toolson thanked dealers and customers for their support, and expressed hope that the company could bounce back.
“With this support, we believe the opportunity exists to leverage our market position, preserve the strength of our brands for our dealers and assure the continuation of the Monaco lifestyle for our customers,” he said.
The company estimated that it has between 25,000 and 50,000 creditors. Its largest unsecured creditors are Custom Chassis Products of Elkhart, Ind., which is owed $6.8 million, and Quality Enterprises USA, a utility installation contractor in Naples, Fla., which is owed $2.68 million. In its statement, Monaco said the Custom Chassis Products operation – a joint venture with Navistar International Inc. – would not be affected by the bankruptcy filing.
Oregon creditors include API Inc., a distributor of automotive paint and industrial supplies in Eugene, which is owed $594,476; Industrial Finishes Inc., a Eugene supplier of paint and other finishes, which is owed $427,984; and Guaranty RV, a Junction City RV dealer, which is owed $334,028.
Other creditors include: Lazydays RV Center Inc., Seffner, Fla., $1.11 million; Onan Corp., Fridley, Minn., $1.05 million; Hardwoods Specialty Products, Renton, Wash., $815,330; Acunto Landscape & Design, Marco Island, Fla., $697,395; Patrick Industries Inc., Elkhart, Ind., $691,500; Villa International, Cerritos, Calif., $691,174; Horizon Transport Inc., Wakarusa, Ind., $684,037; and Carefree of Colorado, Broomfield, Colo., $619,540.
The company also has more than 200 local shareholders, large and small, according to its bankruptcy filing. When a company reorganizes under a Chapter 11 bankruptcy filing, the shareholders are paid only after all other debts have been paid, and only if there is money left.