CHAPTER 7 LIQUIDATION

[Jon Wehrenberg]

I think that you may find that by the time a company reaches chapter 7, all items sold are handled by the court or its designee..........the trustee.

I noticed that Bob Lee aka Lee Joint Ventures, has terminated the lease on the land and buildings effective on Monday; my best guess is that this is a long running battle between Lee and the Howard boys. I wouldn't be surprised if Lee prevails at the end of the day picks up the pieces and starts afresh.

That would make Bob Lee the "white knight", a position I have been in.

This whole thing has gone beyond the creditor's committee and appears the court is now the last thing between Chapter 11 and 7. If I were to bet, it is over. Maybe not today, but once the first domino falls, that is the first piece of the corporation is sold off to satisfy creditors who now just want to get a few cents on the dollar it will never be re-assembled.

The only way I can see somebody stepping in to keep it going as an entity is if the creditors and the courts allow it. I can tell you that months will go by before anyone could put it together that way because as the "white knight" nobody will assume the risk from contingent liabilities, or from disgruntled creditors, and no lending institution will be providing working capital or other loans necessary without being in first position, something current secured creditors will never give up. There is far too much negotiations required before anyone can emerge to keep it going. Once production ceases, skilled workers are scattered, vendors go away, and customers disappear thoughts of saving the entity become nothing more than wishfull thinking.

If Miles or any entity can get the intellectual materials it appears to be the only hope to be able to maintain the more complex proprietary design features. The good news is that a liquidation takes a little time to set up so if anyone is interested in aquiring that stuff there is a little time.

[flyu2there]

The Howards and their creditors own the brand, some tools, probably a couple of pencil sharpners and some inventory but, the plant, facilities and real property are clearly in the hands of Bob Lee. Now, what do you think he is going to do with all of that?

[garyde]

There's been so many auto companies over the years who have gone under only to have the name come back with new owners. Country Coach used to have a very good Brand, maybe someone will pick it up and start over.

[Jon Wehrenberg]

Current CC owners will not benefit at all if the company springs back as just a new company with the CC name. Current owners need continuity. If any one person controls the hard assets but not the intellectual materials that person (or entity) will likely start over with a new design.

But let's get reasonable. What exactly has changed that will make a company or product line suddenly successful when it has not been, even if we totally ignore the fact that the economy still sucks?

[flyu2there]

Here is a link that may relieve some anxiety when you call CC for parts and hear the lady say....."the number you have reached is not in service at this time, please be sure you have the right number in mind and .........."

http://specialtycoachparts.com/

[wave]

As a Vogue V owner I can say that the demise of the company has not been a major factor. There are at least two repair facilities that specialize in the brand - a direct result of the death of the company. In fact the guy who now works on my coach also helped design it and watched it go through the line during assembly. The water pump, toilet, hydronic heating, water tank, washer/dryer , leveling mechanism etc. are all common to high end coaches. If this is true of a minor player like Vogue it will be even more so with CC. In fact there may be more service available as the skilled workers seek to continue in a business that they know very well.

Wave

[rahangman]

Thanks Jon (and all the POGS) as even in my first year as a POG member, I have easily saved my $100 . Being somewhat concerned at being an Orphan owner on my first & only coach (so far) it is comforting to know that there is a way to get information at least some to enable me to work out problems without plunking down my wallet and holding my breath.

[Jon Wehrenberg]

I do not think anyone who has an "orphan" is out of luck. It complicates getting proprietary parts and technical advice, but so far I am not aware of anybody owning any brand that was not able to resolve a problem.

I suspect as coaches get more complex and contain sophisticated componentry problem solution will also get more difficult, but not impossible.

There are a lot of coaches whose converters are no longer in business or supporting the product. I doubt if any are sitting up on blocks on the front lawn because they are not driveable. (Unless they are from TN, in which case that's how we park all our vehicles.)

[Loc]

I am sure the trustee is pursuing all avenues including a Section 363 sale of the assets as the best recovery for the creditors. It could avoid contingent liability issues. I wouldnt be surprised to see a Bob Lee sponsored company emerge from the ashes.

[Jon Wehrenberg]

Loc,

I would disagree to the extent that any potential liabilities such as arising from an accident, will follow the assets. Whoever gets the bulk of the assets cannot shake the tail.

So looking at this and pretending to be a Bob Lee, I start out with no less than two big strikes against me. First the liability issue which may not be that large, but the second is the market sucks. We all can point to enormous upside potential, but in reality unless we can put a date on that potential market upswing any newcomer to this market has just assumed huge risk.

Given that serious players in the RV market are all struggling just to still be alive when the market finally turns, tackling a start-up (which this will be) is going to be very difficult, made more so by the likely lack of funding for such silly things as working capital, receivables, inventory, etc.