Wednesday, February 04, 2009
THE COUNTRY COACH/WELLS FARGO SAGA CONTINUES
RV Business
Wednesday, February 4, 2009
As reported by the Register-Guard, a federal magistrate said today (Feb. 5) he needed to hear more legal arguments before allowing Wells Fargo Bank to take possession of collateral from Country Coach LLC, which can’t repay an $8 million loan balance — even though the bank said power and heat at the Junction City, Ore., plant would be shut off Wednesday unless it pays the landlord $58,000.
“We are in immediate peril of our collateral being damaged,” David Kurzwell, an Atlanta attorney representing Wells Fargo, told Magistrate Thomas Coffin during a two-hour hearing in U.S. District Court in Eugene.
Coffin, though, said he wouldn’t “shoot from the hip,” and asked Wells Fargo’s lawyers to file a brief by the end of business Thursday that spells out their arguments and specifies exactly what collateral they want to collect.
Wells Fargo said Country Coach is in default on nearly $8 million from a $25 million revolving loan fund, and lawyers for Country Coach conceded the point.
But the lawyers disagreed on how to resolve the dispute.
Meanwhile, another creditor filed suit Wednesday morning against Country Coach in an effort to recovers assets. Prevost, a Canadian manufacturer of bus chassis, said Country Coach has four of its bus shells, valued at $500,000 each, and Prevost wants them back.
Wednesday, February 4, 2009
As reported by the Register-Guard, a federal magistrate said today (Feb. 5) he needed to hear more legal arguments before allowing Wells Fargo Bank to take possession of collateral from Country Coach LLC, which can’t repay an $8 million loan balance — even though the bank said power and heat at the Junction City, Ore., plant would be shut off Wednesday unless it pays the landlord $58,000.
“We are in immediate peril of our collateral being damaged,” David Kurzwell, an Atlanta attorney representing Wells Fargo, told Magistrate Thomas Coffin during a two-hour hearing in U.S. District Court in Eugene.
Coffin, though, said he wouldn’t “shoot from the hip,” and asked Wells Fargo’s lawyers to file a brief by the end of business Thursday that spells out their arguments and specifies exactly what collateral they want to collect.
Wells Fargo said Country Coach is in default on nearly $8 million from a $25 million revolving loan fund, and lawyers for Country Coach conceded the point.
But the lawyers disagreed on how to resolve the dispute.
Meanwhile, another creditor filed suit Wednesday morning against Country Coach in an effort to recovers assets. Prevost, a Canadian manufacturer of bus chassis, said Country Coach has four of its bus shells, valued at $500,000 each, and Prevost wants them back.
