Greg Gerber posted on March 20, 2009 09:54
EUGENE, Ore. -- Wells Fargo Bank has agreed to loan Country Coach to $11.5 million so it can build up to 43 coaches over the next 10 months, according to an agreement filed in U.S. Bankruptcy Court in Eugene.
Under a new business model agreed to by the bank, Country Coach would sell the coaches directly from its Junction City factory, eschewing its national dealer network, the company’s chief financial officer, Mark Andersen, said in a court filing. Operations would be financed by a strictly supervised $11.5 revolving loan fund.
Country Coach already owes Wells Fargo about $8.5 million, and the bank had been seeking to seize and liquidate the company’s assets after the company defaulted on that loan.
Because Country Coach is in Chapter 11 bankruptcy, the new plan and the financing must be approved by a judge. A hearing is scheduled at 10 a.m. Monday in U.S. Bankruptcy Court in Eugene.
CEO Jay Howard said Thursday the company plans start bringing back workers as early as Monday to start working on unfinished coaches still on the production line.
SOURCE: Register Guard