ATTENTION IHUBBERS:
RE: CJHBQ – Champion Enterprises Inc.
In an attempt to form an Equity Committee to represent common shareholders of Champion Enterprises Inc. (CJHBQ), we are asking for the support of all CJHBQ shareholders.
Information we need from each shareholder for master letter:
Full Legal Name
Address
Phone #
Email Address
# of Shares Owned
Please email the above requested info to Rawtrader22 at championequity@gmail.com
We feel we have a relatively sound chance of the Judge’s approval to form a shareholder’s Equity Committee given that the company is solvent and debt will soon be satisfied from the sell of various assets in early March 2010. We would greatly appreciate your support if you are a shareholder of Champion Enterprises Inc. Given the upcoming assets auction, we are up against a tight timeline. We have established a deadline to have the above requested information emailed to Rawtrader22 by end-of-day Tuesday, February 16, and request for EC letters mailed out to all parties by Wednesday, February 24.
Once all shareholder’s information has been collected and # of shares tallied, we will draft a “Master Letter” to the Judge, Trustee, and other constituents involved in the BK court proceedings, with a copy to Champion’s Senior Management, Board of Directors and Institutional Holders.
Presiding Judge
Judge Kevin Gross
US Trustee
Office of the United States Trustee (not yet identified)
Senior Management
William C. Griffiths – President & CEO - 245,390 Shares Held
Phyllis A. Knight – EVP, CFO, Treasurer - 383,946 Shares Held
Roger K. Scholten – SVP, General Council & Corporate Secretary
Richard P. Hevelhorst – VP & Controller
Board of Directors
William C. Griffiths – President & CEO, Champion Enterprises, Inc. - 245,390 Shares Held
Eric S. Belsky, Ph.D. – Executive Director, Joint Center for Housing Studies at Harvard University
Selwyn Isakow – President & CEO, The Oxford Investment Group, Inc. - 214,550 Shares Held
G. Michael Lynch – Director, Forward Air Corporation
Thomas A. Madden – Director, FreightCar America, Inc., Intcomex, Inc., Mindspeed Technologies, Inc.- 182,205 Shares Held
Shirley D. Peterson – Director, AK Steel Holding Corporation, The Goodyear Tire & Rubber – 61,506 Shares Held
Company, Wolverine World Wide, Inc.
Institutional Holdings
Alpine Woods Investments – 649.1K Shares Held
Barclays Global Investors, N.A. – 659.2K Shares Held
Columbia Wagner Asset Management – 8.3MM Shares Held
GAMCO Investors, Inc. – 1.7MM Shares Held
Hermes Fund Managers Limited – 1.8MM Shares Held
Netols Asset Management, Inc. – 1.2MM Shares Held
Renaissance Technologies Corp. – 2.5MM Shares Held
Royce & Associates – 1.4MM Shares Held
Vanguard Group Inc. – 770.6K Shares Held
Wells Capital Management Inc. – 6.5MM Shares Held
In addition to the master letter, we are asking each shareholder to draft and mail out individual letters requesting the formation of an Equity Committee to represent holders of common shares of Champion Enterprises Inc. The letters should be mailed to the above individuals asap. Deadline to mail out letters is Wednesday, February 24. The letter should emphasize the importance of having a "voice" and “seat at the table” in the court proceedings to represent common shareholders, and highlight specific reasons why shareholders of common stock should be entitled to representation. Without fair representation from an Equity Committee, we face losing all value of our holdings. Employees of Champion are at risk of losing their retirement savings. Institutions with large positions in Champion face losing a substantial investment if common shares are cancelled upon the company exiting from Bankruptcy. We, collectively, as stakeholders and part owners in Champion Enterprises Inc. in the form of ownership of common stock, feel it is imperative to have fair representation through the court proceedings by formation of an Equity Committee. We appeal to the Judge, on behalf of all common shareholders, to consider granting us this representation.
The below sample letters can be used as templates to draft your letters requesting the formation of an EC. The letters should be personalized and include all of the above information (full legal name, address, # of shares, etc.) and addressed to the recipients. In each letter, be sure to include your CC list at the bottom so the recipient is aware of who all receives the letter. This is a powerful way to communicate the importance of the letter’s content. Again, it is critical that the letters are mailed out by Wednesday, February 24 and they should be mailed with mail tracking and delivery confirmation to ensure delivery and receipt. If we all mail letters individually during the week of Monday, February 22, all recipients (Judge, trustee, Champion leadership, Institutions, etc.) will begin receiving a steady stream of letters requesting the formation of an Equity Committee, and they will be compelled to make a decision regarding an EC.
When drafting your letters, please be succinct, to the point, not too verbose, and clearly outline and define our objectives and facts to support the need for an equity committee. Important facts that should be included are information about Champion’s solvency, long history of successful business operations, and ongoing stated commitment to employees and stakeholders.
Below are two sample letters that can be used to draft your personal letters. Please customize the letter so they are not all the same. It will be more powerful if they are written individually, with different language and content. There is strength in numbers, so the more letters you write to the aforementioned individuals, the more impactful it will be.
Sample 1:
February 12, 2010
Via U.S. Postal Mail, Electronic Mail and Fax
U.S. Department of Justice
(INSERT TRUSTEE HERE)
Office of the United States
Trustee
844 King Street
Suite 2207
Lockbox 35
Wilmington, DE 19801
Re: Champion Enterprises, Inc. Case No. 09-14019
Dear (INSERT TRUSTEE HERE):
This letter is to seek the appointment of a stockholder’s committee to protect the interest of all shareholders of Champion Enterprises. Recent court documents and filings by the Official Committee of Unsecured Creditors and the proposed “Purchaser” indicate an obvious neglect on their part to fully represent the equity holders of Champion in the proposed Asset Sale.
The lack of representation is particularly outrageous considering that Champion’s current assets exceed their liabilities. Champion Enterprises is a solvent company with a liquidity issue. When assets exceed liabilities the shareholder’s retain value in the company. Without a voice on this matter, Champion’s shareholders are not fairly represented.
For these reasons, an Official Equity Committee is necessary for the protection of the estate and equity therein. As I have indicated, I am willing to serve as a member of the Equity Committee if formed.
Thank you for your attention to this request and I look forward to your response.
Respectfully yours,
Name
Address
Phone #
email
CC: Judge Kevin Gross
United States Bankruptcy Court
824 North Market Street
6th Floor
Wilmington, DE 19801
Courtroom: 3
Sample 2: Provided by BurrTim
February 12, 2010
Via U.S. Postal Mail, Electronic Mail and Fax
U.S. Department of Justice
(INSERT TRUSTEE HERE)
Office of the United States Trustee
844 King Street
Suite 2207
Lockbox 35
Wilmington, DE 19801
Re: Champion Enterprises, Inc. Case No. 09-14019
(INSERT TRUSTEE HERE)
This letter is to seek the appointment of a stockholder's committee to protect the interest of all shareholders of Champion Enterprises. Recent court documents and filings by the Official Committee of Unsecured Creditors and the proposed "Purchaser" indicate an obvious neglect on their part to in any way compensate the equity holders of Champion in the proposed Asset Sale. This hurried and ill-considered Asset Sale seems to be an outright attempt to steal this company from the current owners of common shares.
Champion Enterprises is a solvent company with a liquidity issue. When assets exceed liabilities the shareholders retain value in the company. Without a voice on this matter, Champion's shareholders are not fairly represented. A court ordered delay of this fire sale allowing a thorough financial rendering seems reasonable.
For these reasons, an Official Equity Committee is necessary for the protection of the estate and equity therein. As I have indicated, I am willing to serve as a member of the Equity Committee if formed. It appears a US Trustee has not been appointed in this case, yet another evidence this is a rushed attempt to trample shareholders and others interest. I ask you to please stop this auction whether an Equity Committee is formed or not.
Thank you for your attention to this request and I look forward to your response.
Respectfully yours,
Name
Address
Phone #
email
Member of Champion Shareholders Alliance
CC: Judge Kevin Gross
United States Bankruptcy Court
824 North Market Street
6th Floor
Wilmington, DE 19801
Courtroom: 3
We (Champion IHUB board members) welcome any additional thoughts on the subject. This is a very small time/energy investment of time, energy and money for stamps that could pay off handsomely. We are excited about the opportunity of the formation of a shareholders’ Equity Committee, and greatly appreciate your help in seeing that we are fairly represented during the bankruptcy process.
Kind Regards, Clint
