Country Coach avoids liquidation -- for now
EUGENE, Ore. -- A federal bankruptcy judge found troubled RV manufacturer Country Coach can stay open and continue bankruptcy proceedings.
Rebecca Kamitsuka, an attorney for the U.S. Trustee had asked Judge Albert Radcliffe to dismiss Chapter 11 proceedings, saying Country Coach has continued to lose money since re-opening with a skeleton crew earlier this year.
Mark Andersen, Country Coach's Chief Financial Officer, testified Country Coach has failed to meet sales and manufacturing goals set forth when the company re-opened.
A dismissal would have shut down Junction City-based Country Coach and liquidated its assets.
However, attorneys representing Country Coach's unsecured creditors and Wells Fargo, which had sued Country Coach earlier this year to recoup $8.5 million, said they would like to see the company continue in bankruptcy proceedings.
Several people read statements of support for Country Coach before opening arguments in the bankruptcy hearing. They included Junction City officials, auto industry business owners and Country Coach employees, who talked about how important the company is to them.
"I was one of the lucky ones that's been only laid off recently but I have lots of co-workers that have been laid off for over a year now," said Shannon Kalb, a Country Coach purchasing agent, who read a statement Thursday morning. "So I wanted to put a face with those people."
"The debtor [Country Coach] has overwhelming support, certainly from employees, unsecured creditors, investors," noted Radcliffe, along with qualified support from Wells Fargo.
Radcliffe, saying the court can take community interest into account, added that dismissal would appear to benefit no one.
Matt Howard, Country Coach spokesman, said the company plans to exit bankruptcy in mid-February.
