PRNewswire-FirstCall/ -- Monaco Coach Corporation (Pink Sheets: MCOAQ) says it has signed an agreement to sell substantially all of its RV manufacturing assets to a unit of Navistar, Inc. for about $52 million.
Closing is scheduled to occur no later than June 1, 2009, subject to certain closing conditions and completion of the bankruptcy court approval process. Monaco filed for Chapter 11 bankruptcy relief on March 5 and signed a letter of intent to sell the RV division to Navitar in late March (see http://www.mfrtech.com/articles/1966.html)
The transaction includes certain manufacturing facilities located in Indiana and Oregon. In addition, Navistar will acquire all brands, intellectual property, inventories and equipment relating to Monaco's motorized and towable recreational vehicle segments.
Excluded from the transaction are the Motorhome Resorts segment, the Roadmaster Cargo Trailer business and several industrial properties. Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.
Navistar, which reports nearly $15 billion in annual sales, manufactures commercial vehicles, military vehicles, diesel engines and related parts and services.
According to a press release, Monaco officials caution that it presently appears there will be no proceeds ultimately available to the company from this transaction and other potential asset sales sufficient, after payments to creditors, to result in any distribution to the shareholders of Monaco.
For more information about the companies visit http://www.navistar.com and http://www.monaco-online.com/
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