Monaco Coach Receives $50M Offer For Main Assets

DAN STRUMPF

NEW YORK (AP) — Monaco Coach Corp., which filed for Chapter 11 bankruptcy protection earlier this month, said a "major public company" has offered to purchase its core RV manufacturing business for $50 million, according to court documents.

Monaco attorney Tim Cairns declined to name the potential buyer. Monaco said in a filing at U.S. Bankruptcy Court in Wilmington, Del., on Wednesday that it received the letter of intent offering cash or stock for the portion of the company earlier this week.

Monaco said it is working to get support for the offer from its main lenders, Bank of America NA and Ableco Finance LLC, but so far has not received any commitments, according to court filings.

The Coburg, Ore.-based recreation vehicle maker said if the offer goes through, "jobs would be preserved for the local communities so heavily affected by the (company's) current circumstances and certain creditors would be benefited by the continuation of (its) business lines," according to court documents.

Monaco filed for bankruptcy protection March 5 amid the steep downturn in the RV industry. The company is continuing to operate under bankruptcy, though its stock has been delisted.