UPDATE 1-Fleetwood Enterprises in loan talks with BofA
Tue Mar 17, 2009 12:02pm EDT
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By Chelsea Emery
NEW YORK, March 17 (Reuters) - Motor home maker Fleetwood Enterprises Inc (FLTWQ.OB) is negotiating with Bank of America (BAC.N) for bankruptcy financing and hopes to present a plan to a bankruptcy court as early as next week, according to court documents.
Company spokeswoman Rivian Bell was not able to specify the amount of debtor-in-possession financing being discussed. Such financing is a loan made to a company to help it fund operations while it restructures under bankruptcy protection.
Fleetwood, which also makes manufactured housing, has asked the court to approve emergency funding to pay workers' compensation benefits to third-party administrators, according to the company's filing with the Bankruptcy Court for the Central District of California in Riverside on Monday. A hearing was scheduled for 11 A.M. PDT today (Tuesday).
Fleetwood filed for bankruptcy on March 10, hurt by high fuel prices and the U.S. economic recession that had limited sales of its motor homes. The U.S. housing market decline has also slashed demand for its manufactured homes.
It is shuttering its travel trailer division and seeking a buyer for its motor home and manufactured housing units.
"There has been outreach to strategic and financial buyers and there has been interest," said Bell, adding that she was unable to clarify further.
The Fleetwood case is In re Fleetwood Enterprises, Inc, US Bankruptcy Court, Central District of California (Riverside), No. 09-14254. (Reporting by Chelsea Emery; editing by John Wallace)
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