RIVERSIDE, Calif., April 3 /PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (BULLETIN BOARD: FLTWE) ("Fleetwood"), a leading producer of recreational vehicles and manufactured homes, today reported that the U.S. Bankruptcy Court has approved orders that the company requested to support the continued operation of its motor home and manufactured housing businesses.
On April 1, 2009, Fleetwood received authorization through an interim order to obtain up to $80 million in Debtor-in-Possession ("DIP") financing to supplement the company's working capital needs, including a $65 million sub-limit for Letters of Credit that the company had in place prior to its Chapter 11 filing. The Court authorized the DIP financing as senior secured super-priority post-petition extensions of credit from its lenders, led by Bank of America, N.A. as agent. An additional hearing will be held on April 21, 2009, regarding a final order on the company's DIP financing.
Fleetwood also announced that its requests to pay pre-petition dealer and retailer sales incentives and warranty service claims for Fleetwood motor homes and manufactured homes were approved. Under Chapter 11, the company is permitted to continue to pay for approved post-petition warranty service that is performed on Fleetwood motor homes and manufactured homes and to pay for sales incentives earned on or after March 10, 2009, in the ordinary course of business.
Additional requests made since the company voluntarily filed for Chapter 11 on March 10, 2009, have also been approved. The orders, entered by Judge Meredith A. Jury of the Central District of California in Riverside, include:
-- Authorization for Fleetwood to access its pre-existing cash management systems and its cash collateral. -- Approval to pay outstanding pre-petition employee expenses and workers' compensation claims. -- Authorization to pay certain common carriers and other vendors for pre-petition amounts outstanding. The company has submitted a motion requesting permission to pay certain additional vendor claims, which has not yet been heard by the Court.
Copies of the entered orders are available electronically at http://www.kccllc.net/fleetwood.
Founded in 1950, Fleetwood Enterprises, Inc. and its various subsidiaries produce, distribute, and service recreational vehicles and manufactured housing. The company is dedicated to providing high-quality, innovative products that offer exceptional value to customers. Fleetwood continues to employ more than 3,000 people in 15 plants located in 10 states. Fleetwood's products are primarily marketed through extensive dealer networks throughout the United States and Canada. The company is headquartered in Riverside, Calif.
Additional information about the company's reorganization may be found online in the news section of http://www.fleetwood.com/ or http://www.kccllc.net/fleetwood.
Contact: Rivian Bell or Sydney Rosencranz The Abernathy MacGregor Group rlb@abmac.com, spr@abmac.com (213) 630-6550; (888) 477-4319 (24/7)
Fleetwood Enterprises, Inc.
CONTACT: Rivian Bell, +1-213-630-6550, rlb@abmac.com, or Sydney
Rosencranz, 1-888-477-4319, spr@abmac.com, both of The Abernathy MacGregor
Group, for Fleetwood Enterprises, Inc.
Web Site: http://www.fleetwood.com/
