Wednesday, December 30, 2009
COUNTRY COACH ASSETS TO BEGIN BEING AUCTIONED OFF FEBRUARY 4TH
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