Tuesday, November 18, 2008
BEAUDRY RV FILES CHAPTER 11 BANKRUPTCY
Greg Gerber posted on November 18, 2008 18:15
TUCSON, Ariz. -- Beaudry RV Company CEO Thomas P. Sylvester announced today the company has filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Related businesses included in the filing are Beaudry RV Resort and four real estate holding companies: Palo Verde Ventures LLC, Gila River Ventures LLC, Witt Ventures LLC and Smart Ventures LLC. Two related car dealerships filed under Chapter 11 on Nov. 17. They are Berry Good LLC is Tucson and Beaudry Chevrolet , Chrysler, Jeep and Dodge in Benson.
Beaudry RV and its related companies are represented in the bankruptcy by Michael McGrath and Frederick Petersen of Mesch, Clark and Rothschild.
Although the current down cycle in the recreation vehicle industry is a factor, the filing for reorganization was undertaken primarily to restructure financing for real-estate related debt, said Sylvester.
Under provisions of Chapter 11, the companies will continue their sales, service and other operations. Sylvester stressed that the company continues to enjoy the support of major vendors and the lender that provides financing to cover inventory.
The Chapter 11 filing was necessary, Sylvester said, to protect operations from the demands of lenders holding the secured debt on real estate and structures which house Beaudry operations. The banking crisis has resulted in this impasse with these lenders, he added.
Beaudry has never missed a payment, or even paid late to lenders, said Sylvester. In fact, Beaudry has reduced its debt to this lender group from more than $42 million in 2006 to $13.3 million today. In addition, Sylvester said the banks have collateral in property worth more than $70 million according to independent appraisals.
The economy in general and in particular the housing-based credit freeze has affected the sales of RVs throughout the country. "In the long term, our ownership and management feel very optimistic about the recovery of the industry," Sylvester said. The largest proportion of RV buyers are over age 55, and the aging of the baby boom points to even greater potential over the next decade, he added.
"The RV lifestyle is not going away. When economic conditions change again, the industry will recover," Sylvester added. "And we want to be there to continue to provide exceptional value and top-notch service."
Sylvester stressed the daily operations at the two RV centers in Tucson, Ariz., and Chandler, Ariz., and at Beaudry RV Resort will continue. "We fully expect the high quality of sales, service and hospitality to be the same next week as it was this week. We have a terrific staff, a dedicated management team and a committed owner," said Sylvester.
SOURCE: Beaudry RV press release
TUCSON, Ariz. -- Beaudry RV Company CEO Thomas P. Sylvester announced today the company has filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Related businesses included in the filing are Beaudry RV Resort and four real estate holding companies: Palo Verde Ventures LLC, Gila River Ventures LLC, Witt Ventures LLC and Smart Ventures LLC. Two related car dealerships filed under Chapter 11 on Nov. 17. They are Berry Good LLC is Tucson and Beaudry Chevrolet , Chrysler, Jeep and Dodge in Benson.
Beaudry RV and its related companies are represented in the bankruptcy by Michael McGrath and Frederick Petersen of Mesch, Clark and Rothschild.
Although the current down cycle in the recreation vehicle industry is a factor, the filing for reorganization was undertaken primarily to restructure financing for real-estate related debt, said Sylvester.
Under provisions of Chapter 11, the companies will continue their sales, service and other operations. Sylvester stressed that the company continues to enjoy the support of major vendors and the lender that provides financing to cover inventory.
The Chapter 11 filing was necessary, Sylvester said, to protect operations from the demands of lenders holding the secured debt on real estate and structures which house Beaudry operations. The banking crisis has resulted in this impasse with these lenders, he added.
Beaudry has never missed a payment, or even paid late to lenders, said Sylvester. In fact, Beaudry has reduced its debt to this lender group from more than $42 million in 2006 to $13.3 million today. In addition, Sylvester said the banks have collateral in property worth more than $70 million according to independent appraisals.
The economy in general and in particular the housing-based credit freeze has affected the sales of RVs throughout the country. "In the long term, our ownership and management feel very optimistic about the recovery of the industry," Sylvester said. The largest proportion of RV buyers are over age 55, and the aging of the baby boom points to even greater potential over the next decade, he added.
"The RV lifestyle is not going away. When economic conditions change again, the industry will recover," Sylvester added. "And we want to be there to continue to provide exceptional value and top-notch service."
Sylvester stressed the daily operations at the two RV centers in Tucson, Ariz., and Chandler, Ariz., and at Beaudry RV Resort will continue. "We fully expect the high quality of sales, service and hospitality to be the same next week as it was this week. We have a terrific staff, a dedicated management team and a committed owner," said Sylvester.
SOURCE: Beaudry RV press release
