By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
COBURG, Ore. -- After resolving concerns by major creditors, Monaco Coach was able to get approval Friday for its proposal to sell the recreational vehicle division to Navistar Inc.
The bankruptcy court presiding over the Chapter 11 proceedings approved the plan for Navistar to buy Monaco's major RV assets for $52 million at an auction scheduled for May 21. Terms of the agreement the two companies initially signed in April include Navistar purchasing certain manufacturing plants in Indiana and Oregon along with all RV brand names, inventories and equipment related to building Monaco's towables and motorhomes.
In particular, creditor Ableco Finance filed an objection, in part asking the court to reject the bidding procedures because the sale price was less than the $75 million Monaco owes to Ableco and Bank of America. However, according to The Register-Guard in Eugene, Ore., Monaco's attorneys were able settle creditors' protests about a minute before Friday's hearing began.
Although details of which assets Navistar will be buying and what the company wants to do with those assets have not been released, local officials said they would welcome the return of RV manufacturing to their towns.
"From my perspective, I wish them the best of luck," said Larry Thompson, mayor of Nappanee. "If they create jobs and get people back to work, I don't care if they're building motorhomes or chicken coops."
Ernest Wiggins, mayor of Warsaw, echoed Thompson's comments, saying his community is interested in any company that wants to provide jobs.
Monaco closed production facilities in Nappanee and Wakarusa in 2008, putting about 1,000 workers on unemployment, and consolidated operations into the R-Vision plant located in Kosciusko County.
The manufacturer then stopped production and furloughed the remaining workers at its plants in Indiana and Oregon in December before permanently laying them off in March.
Thompson speculated Navistar would be more interested in reopening the manufacturing facility in Wakarusa rather than the wood shop in Nappanee. Still, he noted, jobs in a neighboring community would benefit his constituency.
"If it's bring us jobs, we're for it," he said.