RVRESOLVE

Greg Gerber posted from his RV Daily Report

JUNCTION CITY, Ore. -- The assets of Country Coach RV will be auctioned beginning at 9 a.m. Feb. 4, according to information filed with the bankruptcy court. Assets to be auctioned include equipment, inventory and furnishings.

Thos assets include 10 luxury coaches completed and ready for sale as well as 15 partially-built motorhomes, according to an article appearing int he Register Guard. Commercial Indsutrial Auctioneers of Portland, Ore., was hired by the court to oversee the auction. According to the Register Guard, the auctioneer expects the auction to bring in $5 million. However, court documents show the auction company will receive between 5 percent and 12.5 percent of all proceeds.

Items will be offered for inspection from 9 a.m. to 5 p.m. Feb. 3.

In a motion to settle filed with the bankruptcy court, Wells Fargo Bank was granted a first-priority lein on virtually all of Country Coach's assets, meaning they will recover most of the money raised through the sale.

However, certain provisions have been established to generate money to pay remaining creditors. Those provisions include the following carve outs:

5 percent of the first $4 million of net proceeds
6 percent of proceeds between $4 million and $5.5
10 percent of the remaining proceeds from the auction
$35,000 to pay Chapter 11 administration wage claims
25 percent, after expenses, from the sale of Prevost bus shells
30 percent from the sale of property in Indio, Calif.
5 percent of the refund, if any is received, in connection with funds set aside to appeal an adverse judgement
"Considering the costs that the bankruptcy estate would incur even if the property were abandoned and the lack of funds to pay the expenses that the bank is willing to advance, the guaranteed minimum to the bankruptcy estate to be paid by the bank, the monies to be
paid for the benefit of certain priority wage claims," wrote Trustee Kenneth Eiler in filing a report with the court. "The cost and uncertainty of engaging in any litigation with the bank, the delay that would be occasioned thereby and the uncertainty of the outcome, the trustee recommends the settlement."

According to the Register Guard, U.S. Bankruptcy Judge Albert Radcliffe last month ordered Country Coach be liquidated after it missed repeated deadlines for submitting a reorganization plan. Riley Investment Management, which is headed by Bryant Riley, both an owner and creditor of Country Coach, is not expected to receive any money.

SOURCE: United States Bankruptcy Court District of Oregon

Vehicle Make / Model: Model Year(s):
SPARTAN / K2 2008
SPARTAN / K3 2008-2009
SPARTAN / MM 2008-2010
Manufacturer: SPARTAN CHASSIS, INC. Mfr's Report Date: DEC 14, 2009
NHTSA CAMPAIGN ID Number: 09V478000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, AIR
Potential Number of Units Affected: 70
Summary:
SPARTAN IS RECALLING CERTAIN MODEL YEAR 2008 THROUGH 2010 MM, K2, AND K3 MOTORHOME CHASSIS MANUFACTURED FROM APRIL 27, 2007 AND AUGUST 11, 2009, EQUIPPED WITH PNEUMATIC AND HYDRAULIC ADJUSTABLE BRAKE PEDAL ASSEMBLIES P/NOS. 6562618, 6565118, 77025-001, 77025-002, 77025-501, 77050-004, SUPPLIED BY KONGSBERG AUTOMOTIVE. SOME ASSEMBLIES COULD CONTAIN A DRIVE PIN THAT IS BELOW SPECIFICATION AND MAY BECOME DISENGAGED FROM THE BRAKE ARM CAUSING SEPARATION OR LOOSENING OF THE PEDAL FROM THE REMAINDER OF THE ASSEMBLY.
Consequence:
IF THE DRIVE PIN BECOMES DISENGAGED ON THE BRAKE PEDAL ASSEMBLY, IT COULD RESULT IN A LOSS OF VEHICLE BRAKING FUNCTION AND/OR CAUSE THE BRAKE PEDAL TO INTERFERE WITH THE THROTTLE PEDAL FUNCTION. EITHER CONDITION COULD RESULT IN A VEHICLE CRASH.
Remedy:
SPARTAN IS WORKING WITH KONGSBERG AND THE VEHICLE MANUFACTURERS TO REMEDY THESE MOTORHOMES. PLEASE SEE RECALL 09E-064. THE REMEDY WILL BE PERFORMED BY SPARTAN FREE OF CHARGE. THE SAFETY RECALL IS EXPECTED TO BEGIN ON OR BEFORE JANUARY 4, 2010. OWNERS MAY CONTACT SPARTAN TOLL-FREE AT 1-800-543-4277 - OPTION 1.
Notes:
SPARTAN'S CAMPAIGN NUMBER IS 09027. OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

Vehicle Make / Model: Model Year(s):
FLEETWOOD / JAMBOREE SPORT 2010
FLEETWOOD / TIOGA RANGER 2010
Manufacturer: FLEETWOOD RV, INC. Mfr's Report Date: DEC 11, 2009
NHTSA CAMPAIGN ID Number: 09V486000 NHTSA Action Number: N/A
Component: EQUIPMENT:RECREATIONAL VEHICLE:LPG LINES AND FITTINGS
Potential Number of Units Affected: 60
Summary:
FLEETWOOD RV IS RECALLING CERTAIN MODEL YEAR 2010 JAMBOREE SPORT AND TIOGA RANGER 25G CLASS C MOTORHOMES MANUFACTURED BETWEEN APRIL 20, 2009 AND DECEMBER 7, 2009. THE LPG SUPPLY LINE ROUTED THROUGH THE REAR WHEEL WELL MAY COME IN CONTACT WITH THE CHASSIS SPRING ASSEMBLY CAUSING DAMAGE TO THE LPG SUPPLY LINE.
Consequence:
THE DAMAGED LPG SUPPLY LINE MAY RESULT IN A PROPANE GAS LEAK AND COULD RESULT IN A FIRE.
Remedy:
DEALERS WILL INSPECT THE ROUTING OF THE LPG SUPPLY LINE AND REROUTE ITS LOCATION. THIS SERVICE WILL BE PERFORMED FREE OF CHARGE. THE MANUFACTURER HAS NOT YET PROVIDED AN OWNER NOTIFICATION SCHEDULE. OWNERS MAY CONTACT FLEETWOOD RV AT 1-800-509-3418.
Notes:
FLEETWOOD SAFETY RECALL NO. 91209FRV. OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

Vehicle Make / Model: Model Year(s):
KEYSTONE / RAPTOR 2010
Manufacturer: KEYSTONE RV COMPANY Mfr's Report Date: DEC 14, 2009
NHTSA CAMPAIGN ID Number: 09V492000 NHTSA Action Number: N/A
Component: EQUIPMENT:ELECTRICAL:JACK
Potential Number of Units Affected: 155
Summary:
KEYSTONE IS RECALLING CERTAIN MODEL YEAR 2010 RAPTOR FIFTH WHEEL TRAILERS. THE REAR STABILIZING JACKS MAY EXTEND WHILE DRIVING DUE TO EXPOSED WIRING ON THE EXTEND/RETRACT SWITCH FOR THE JACKS. IF THE EXPOSED WIRING IS SUBJECT TO ROAD SPRAY, IT MAY ACTIVATE THE REMOTE CONTROL PANEL AND EXTEND THE JACKS.
Consequence:
IF THE JACKS EXTEND WHILE DRIVING, IT INCREASES THE RISK OF LOSS OF VEHICLE CONTROL LEADING TO A VEHICLE CRASH.
Remedy:
DEALERS WILL REPLACE THE EXTEND/RETRACT SWITCH WITH A SEALED SWITCH SUPPLIED BY KEYSTONE. THIS SERVICE WILL BE PERFORMED FREE OF CHARGE. THE SAFETY RECALL IS EXPECTED TO BEGIN DURING JANUARY 2010. OWNERS MAY CONTACT KEYSTONE 1-866-425-4369.
Notes:
KEYSTONE SAFETY RECALL NO. 09-127. OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

Vehicle Make / Model: Model Year(s):
SPARTAN / K3 2005-2006
Manufacturer: SPARTAN CHASSIS, INC. Mfr's Report Date: NOV 25, 2009
NHTSA CAMPAIGN ID Number: 09V455000 NHTSA Action Number: N/A
Component: ENGINE AND ENGINE COOLING
Potential Number of Units Affected: 14
Summary:
SPARTAN IS RECALLING 14 MODEL YEAR 2005 AND 2006 MOTORHOMES MANUFACTURED BETWEEN NOVEMBER 12, 2004 AND MARCH 1, 2006, EQUIPPED WITH CATERPILLAR C15 ENGINE. THE VARIABLE VALVE ACTUATION OIL LINE MAY RUB AGAINST THE P-CLIPS RETAINING THE OIL LINE, CAUSING AN OIL LEAK.
Consequence:
AN OIL LEAK MAY RESULT IN A FIRE HAZARD.
Remedy:
SPARTAN IS WORKING WITH CATERPILLAR TO REMEDY THESE VEHICLES. PLEASE SEE RECALL 09E-020. CATERPILLAR WILL INSPECT AND REPAIR THE NECESSARY COMPONENTS FREE OF CHARGE. THE SAFETY RECALL IS EXPECTED TO BEGIN ON OR ABOUT DECEMBER 11, 2009. OWNERS MAY CONTACT CATERPILLAR TOLL-FREE AT 1-800-447-4986 OR SPARTAN AT 1-800-543-4277 ¿ OPTION 1.
Notes:
SPARTAN'S CAMPAIGN NUMBER IS 09025. OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

Vehicle Make / Model: Model Year(s):
NEWELL / MOTOR HOME 2005-2008
Manufacturer: NEWELL COACH CORP. Mfr's Report Date: NOV 23, 2009
NHTSA CAMPAIGN ID Number: 09V459000 NHTSA Action Number: N/A
Component: ENGINE AND ENGINE COOLING
Potential Number of Units Affected: 113
Summary:
NEWELL IS RECALLING MODEL YEAR 2005-2008 MOTOR HOMES EQUIPPED WITH CATERPILLAR C15 ENGINE. THE VARIABLE VALVE ACTUATION OIL LINE MAY RUB AGAINST THE P-CLIPS RETAINING THE OIL LINE, CAUSING AN OIL LEAK.
Consequence:
AN OIL LEAK MAY RESULT IN A FIRE.
Remedy:
NEWELL IS WORKING WITH CATERPILLAR TO REMEDY THESE VEHICLES. PLEASE SEE CATERPILLAR¿S DEFECT REPORT 09E-020. CATERPILLAR WILL INSPECT AND REPAIR THE NECESSARY COMPONENTS FREE OF CHARGE. OWNERS MAY CONTACT CATERPILLAR TOLL-FREE AT 1-800-447-4986.
Notes:
OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

From RV Business:

Country Coach Inc. CEO Jay Howard went to court Wednesday (Nov. 25) hoping to negotiate survival of his company. He ended up bargaining for access to his own office at the Junction City, Ore., plant.
It was a negotiation he lost.
Wells Fargo — seeking the return of $8.2 million in loans it made to the now-bankrupt company — has posted a security guard at the plant, although Howard may later be allowed a supervised visit to pick up his personal items, according to The Register-Guard, Eugene, Ore.
“After 37 years of Country Coach, I find it difficult to believe that it’s done,” Howard said after the hearing. “But we’ll see. We will see.”
U.S. Bankruptcy Judge Albert Radcliffe ordered immediate conversion of the RV maker’s Chapter 11 reorganization bankruptcy — begun in March — into a Chapter 7 liquidation, although a trustee may not be on the job until Monday because of the Thanksgiving holiday.
The company had 1,600 employees two years ago. In November 2008, it shut down and put 500 remaining employees out of work.
After gaining the protection of the bankruptcy court, the company missed repeated deadlines for submitting a reorganization plan — in August, in September and again in October.
The company’s assets include 10 luxury coaches completed and ready for sale, with a total value ranging from $5 million to $9 million, depending on whether they’re sold at auction or sold retail, Howard said recently. There are an additional 15 partially built coaches.
As late as Monday, Howard was hoping to bring in an investor to buy out Wells Fargo’s debt and to allow the company to resume production.
The judge gave the investor, a Washington state businessman named Roger McCombs, until Tuesday to prove he was seriously interested in a purchase by depositing $1 million in a Wells Fargo account. Howard said Tuesday that another investment group that included Bryant Riley, who is both an owner and creditor of Country Coach, had put up $1 million in earnest money by the deadline.
Country Coach attorney David Levant told the judge Wednesday that an investor made a deposit at Wells Fargo, although it wasn’t in a specified account. “Wells Fargo should be able to verify the funds,” Levant said.
Radcliffe left it up to Wells Fargo whether to continue to seek a deal with potential investors: “The ball is pretty much in Wells Fargo’s court,” he said.
But the bank was done with the game, attorney Wilson Muhlheim said. “We’re not interested.”
County Coach’s descent into Chapter 7 liquidation wasn’t surprising to Junction City residents. When the company tried to crank up production after the bankruptcy filing, it managed only a skeleton crew.
“Pretty much everybody’s been assuming that’s what’s going to happen, and (they’ve) been trying to move on with their lives,” Jim Krowka, an employee at B&I True Value Hardware said. “(Company purchases) haven’t been a big part of our business for a couple of years now.”
City Administrator David Clyne said Wednesday night, “I’m hoping that there will be a surviving venture … and that someone will put something back together out of that. Most of the jobs have been long gone, and that’s a shame. But hopefully something will rise out of the ashes.”
“They had a good long run here but, unfortunately, the RV industry was hit very hard by the recession,” Clyne said.
The city has been moving in a different direction economically for some time, he said.
“We’ve been focusing on the prison and the hospital that are shortly to be constructed. … I think there was a realization that the RV industry has kind of come and gone. We’re looking to move forward and succeed in a different direction. Nonetheless, we’d hoped (Country Coach) would be part of it. Now, it doesn’t look good for them.”The city will still receive some property taxes for the land and buildings, he said, although this would be significantly less than the taxes Country Coach was paying at its peak. “I don’t know what the revenue shortfall will be. It will have an impact on our direct services and budget.”
“I feel bad for the local business creditors as well,” Clyne said. “They’ve extended credit, done what they could to keep the company afloat. I’m sure most of their assets are gone.”
As for the people who worked at Country Coach, he said, “They were friends, family, members of the community. I certainly feel for them.”
The company stopped building coaches in September and just recently laid off its remaining employees. Only Howard and Chief Financial Officer CFO Mark Anderson remained on the job.
Levant petitioned the judge to allow Howard and Andersen to stay in their offices and use company computers over the Thanksgiving weekend, continuing to look for investors to rescue the company.
Howard said Wednesday that he doesn’t want to give up. Most managers in the flailing industry are long since gone, he said, “We’ve fought a relatively valiant fight with a lot of people helping.”
But Wells Fargo objected to Howard and Andersen staying on at the plant. “It’s problematic,” Muhlheim said. “We don’t know what might or might not happen.”
David Wade, attorney for Lee Joint Ventures, which owns the land where Country Coach is located, said the company no longer had a lease as of Monday. “Technically there is no right of possession for (Country Coach),” he said.
Radcliffe ruled that Howard and Andersen would be barred from the property, at least until next week when a trustee takes control of the property.
The pair “can take a few days off for want of a better way of putting it,” the judge said.
Afterward, Howard admitted that the fate of Country Coach was no longer in his hands, although he added that he’s still optimistic that something positive for “jobs and the community” will happen.
In the meantime, Howard said he would spend a lot of time over the holiday with his 81-year-old mother, who’s recuperating from knee replacement surgery.

From RV Business.Com:

Junction City, Ore., RV maker Country Coach is heading for liquidation unless a last-gasp bid by an outside investor to settle the company’s debts and bring it out of bankruptcy comes to fruition in short order, according to The Register-Guard, Eugene, Ore.
In U.S. Bankruptcy Court on Monday (Nov. 23), lawyers for the company and its main creditor, Wells Fargo Bank, said Country Coach is out of money and out of options, unless a Washington businessman named Roger McCombs can secure a stay of execution. If McCombs deposits $1 million in earnest money in a Wells Fargo escrow account by this afternoon, he’ll have 10 days to negotiate a deal to pay off the debt to the bank and attempt to breathe new life into the company.
Privately held Country Coach, founded in 1968, has been in Chapter 11 bankruptcy since March, providing it with some breathing room from creditors while it sought to reorganize its finances and business model. But even operating with a vastly smaller work force, the company has been steadily losing money. The company has posted losses of $8.8 million since April, company officials testified.
Wilson Muhlheim, the Eugene attorney for Wells Fargo, said Country Coach has consistently been in default on the terms of its loan agreement. Company officials said they have a negative balance of $450,000 on their line of credit with the bank.
“Now we’re at the end of the road,” Muhlheim said. “There is no deal on the table.”
But Country Coach CEO Jay Howard said there could be a deal. He testified that he’s been talking with McCombs since July, that McCombs toured the Country Coach plant in October, and that he’s serious about making a bid.
McCombs is founder and board chairman of Composite Power Corp. and the patent holder of the company’s composite energy delivery system, according to the company’s website. The company, based in Richland, Wash., with an office in Las Vegas, makes utility poles made from composite materials that are lighter, stronger and cheaper than wooden utility poles, and which don’t have to be treated with carcinogenic chemicals, like wood poles, according to the financial website The Hot Pinks, which follows companies whose stocks are traded over the counter.
“He’s an amazing entrepreneur,” Howard said outside court.
In addition to building motorcoaches at the Country Coach plant, McCombs is interested in building mobile medical coaches, using Country Coach’s chassis, and in utilizing magnetic-levitation technology, or maglev, an area in which he holds a patent, Howard said.
“By Dec. 3 we’ll know if McCombs is in or out,” Howard said. “If not, we have no other sponsor.”
Howard said an earlier proposed deal, involving a Texas company called Recreation Live and other investors, appears dead.
If the McCombs deal doesn’t come together, Country Coach’s Chapter 11 case will be converted to Chapter 7 for the purpose of liquidating the company’s assets, Rad cliffe ruled.
Howard said the company has 10 coaches completed and ready for sale, with a total value ranging from $5 million to $9 million, depending on whether they’re sold at auction or sold retail. The company has another 15 coaches that are in progress.
Howard said the company stopped building coaches in September and just recently laid off the remaining staff. Only Howard and CFO Mark Andersen remain on the job, he said.
Even if McCombs is able to strike a deal with Wells Fargo, he’ll also have to come to terms with Country Coach’s landlord, Lee Joint Venture.
David Wade, the landlord’s attorney, said the Lee group was prepared to begin eviction proceedings unless someone makes good on $160,000 owed in property taxes and $263,000 to repair the roofs of the factory buildings.

Vehicle Make / Model: Model Year(s):
TIFFIN / ALLEGRO 2008
Manufacturer: TIFFIN MOTORHOMES, INC. Mfr's Report Date: NOV 17, 2009
NHTSA CAMPAIGN ID Number: 09V443000 NHTSA Action Number: EQ08009
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number of Units Affected: 528
Summary:
TIFFIN IS RECALLING CERTAIN RECREATIONAL VEHICLE EQUIPPED WITH NORCOLD MODEL 1200LR AND 1200LRIM REFRIGERATORS, MANUFACTURED FROM DECEMBER 1, 2001, WITH SERIAL NUMBERS BETWEEN 1273701 AND 1536607, NON-CONSECUTIVELY. A FATIGUE FAILURE IN THE SECTION OF THE COOLING UNIT WHICH CONTAINS THE REFRIGERANT COULD ALLOW THE LIQUID SOLUTION TO SLOWLY LEAK. IF A LEAK OCCURS AND THE REFRIGERATOR CONTINUES TO BE OPERATED AFTER SOLUTION CIRCULATION HAS CEASED THE HEAT SOURCE COULD GENERATE VERY HIGH TEMPERATURES. AT SUCH HIGH TEMPERATURES, THE COOLING UNIT COULD RUPTURE.
Consequence:
IF A LEAK OCCURS AND THE UNIT IS CONTINUES TO OPERATE, HYDROGEN GAS MAY BE EXPELLED AND CAN BE IGNITED, RESULTING IN A FIRE, POSSIBLY CAUSING SERIOUS INJURY OR DEATH.
Remedy:
TIFFIN IS WORKING WITH NORCOLD AND TIFFIN WILL NOTIFY OWNERS AND THE VEHICLE'S REFRIGERATOR WILL BE REPAIRED FREE OF CHARGE BY NORCOLD. PLEASE SEE NORCOLD¿S DEFECT REPORT 09E-027. OWNERS MAY CONTACT NORCOLD'S RECALL CENTER AT 1-800-767-9101.
Notes:
OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

Vehicle Make / Model: Model Year(s):
ROADTREK / RSAD 2007-2009
ROADTREK / RSAF 2007-2009
ROADTREK / SSAD 2007-2009
ROADTREK / SSAF 2007-2009
Manufacturer: ROADTREK MOTORHOMES INC. Mfr's Report Date: NOV 03, 2009
NHTSA CAMPAIGN ID Number: 09V437000 NHTSA Action Number: N/A
Component: ELECTRICAL SYSTEM:BATTERY
Potential Number of Units Affected: 520
Summary:
ROADTREK IS RECALLING CERTAIN MODEL YEAR 2007-2009 CLASS B ROADTREK RSAD, SSAD, RSAF AND SSAF MOTORHOMES BUILT ON CHRYSLER SPRINTER VAN CHASSIS. THE BRAKE LINE COMES IN CLOSE PROXIMITY TO THE BATTERY AND BATTERY TRAY AND CAN RUB AGAINST THEM. THIS SITUATION CAN DAMAGE THE COATING ON THE BRAKE LINE AND EXPOSE THE BARE STEEL. ALSO, BATTERY ACID CAN DRIP ON THE BRAKE LINE.
Consequence:
EITHER OF THESE DEFECTS COULD RESULT IN A BRAKE FLUID LEAK WHICH COULD CAUSE PARTIAL BRAKE FAILURE. THIS COULD RESULT IN A CRASH.
Remedy:
DEALERS WILL INSPECT THE BRAKE LINE AND REPLACE IT WITH ADEQUATE CLEARANCE BETWEEN THE LINE AND THE BATTERY AND BATTERY TRAY. THE REMEDY WILL BE PERFORMED FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING NOVEMBER 2009. OWNERS MAY CONTACT ROADTREK AT 1-888-762-3872.
Notes:
OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .