The Bankruptcy Filing by Champion Enterprises
Sacramento Bankruptcy Attorney Discusses Recent Bankruptcy Filing by Champion Enterprises
Champion Enterprises, a leader in the manufactured housing industry, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware (2009). The company was founded over 50 years ago in a small rural town in Michigan and later grew to encompass over 27 manufacturing facilities located throughout North America and Europe. The company provides factory-built housing and other structures throughout the United States, western Canada as well as the United Kingdom. Pursuant to the petitions filed with the bankruptcy court, Champion only included its U.S. operations in the bankruptcy filing and not those in Canada or the United Kingdom.
In a statement by its Chief Executive Officer, William Griffiths, the company had operated “for many years with a significant debt load.” To make matters worse, the “challenging economic conditions” were attributed in negatively impacting the company’s “capacity for debt.” In its papers, the company listed total assets of $576.5 million and total debt of $521.3 million. The company has stated that daily operations would continue through the restructuring.
As observed in Sacramento County and elsewhere, the construction industry has taken a hard hit through the current tough economic times. Champion indicated it had obtained a $40 million debtor-in-possession credit facility from lenders, some of which would be used for its operations in Canada and United Kingdom. The company has chosen to proceed with a sale process which would allow its lenders to participate after opting not to accept a third party offer. No matter what happens, the next few months will likely be precarious for the company as the housing and financial industries are not expected to improve.
If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!
