WARRENVILLE, Ill. — Navistar International Corp. has issued a non-binding letter of intent to purchase certain assets and assume certain liabilities associated with the recreational vehicle manufacturing business of Monaco Coach Corp.
Monaco, one of the nation’s leading recreational vehicle manufacturers, filed for Chapter 11 on March 5 in the District of Delaware. Headquartered in Coburg Ore., Monaco has manufacturing facilities in Oregon and Indiana and offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.
“If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business,” said Jack Allen, president of Navistar’s North American truck group. “Any asset purchase would fall within our current capital expenditure program for fiscal 2009.”
The letter of intent contemplates that Navistar and Monaco will work to sign a definitive asset purchase agreement by mid-April. Following the completion of due diligence and the bankruptcy court approval process, Navistar and Monaco intend to close the transaction shortly after obtaining the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11, authorizing the transfer of purchased assets to Navistar.
Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.
