Jan 19 2010
Champion Enterprises, Inc. (Pink Sheets: CJHBQ), a leader in factory-built construction, has entered into a letter of intent with a group of investors for the sale of substantially all of its domestic and international operations. In connection with the proposed transaction, an investor group consisting of Centerbridge Partners, L.P., MAK Capital Fund LP and Sankaty Advisors, LLC will invest $50 million in new capital to support the operations and growth initiatives of the new company.
The proposed transaction, which is subject to approval by the Bankruptcy Court, is supported by a group of Champion's current lenders who, together with the lead investors, have agreed in the letter of intent to exchange 100 percent of existing debt under Champion's pre-petition and debtor-in-possession senior secured credit agreements for equity in the new company and a $40 million senior secured five year note. The letter of intent also contemplates, among other things, the assumption of certain liabilities by the buyer, to be further described in the asset purchase agreement between the parties.
Qualified bidders will have an opportunity to submit higher and better offers through a bidding process which the Company has submitted to the Bankruptcy Court for approval and which contemplates that the bidding process will be completed on or about March 1, 2010. The proposed transaction is scheduled to close on or before March 18, 2010.
"This transaction represents very positive news for our customers, employees and other business partners," said William C. Griffiths, Chairman, President and Chief Executive Officer of Champion Enterprises, Inc. "Upon completion of the transaction, our business will be significantly deleveraged and, as a result, positioned to capitalize on our strong market presence and many years of operational improvements. The infusion of new capital will also allow us to fund growth initiatives as the housing markets begin to recover."
Source: http://www.championhomes.net/