Successful Monetization of the Company’s Operating Divisions to Create Maximum Value


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Business:

Fleetwood Enterprises Inc. (“Fleetwood” or the “Company”) was a producer of motor homes, travel trailers and manufactured homes. Based in Riverside, CA, the Company operated 19 manufacturing facilities in 11 states, and marketed its products through a network of 2,150 dealers in the US and Canada.


Transaction:

Starting in 2007, the Company experienced financial problems due to the general slowdown in the U.S. economy and the lack of demand for manufactured housing and recreational vehicles. The Company filed for Chapter 11 in 2009. FocalPoint assisted Fleetwood in selling its operating assets in three separate transactions.


Challenges:

The value of the Company’s operating divisions was deteriorating and each was bleeding cash as the motor home (RV) and manufactured housing (HUD) sectors experienced steep declines. In addition, the military housing business (MOD) needed to be sold quickly, as a lack of bonding capacity would have resulted in the loss of several key contracts.


Solution:

To ensure the successful monetization of the Company’s operating divisions, FocalPoint expeditiously analyzed and established benchmark values for the assets of each of the divisions on a liquidation and going concern basis. In addition, FocalPoint reviewed and analyzed the sale processes undertaken by the Company, introduced new parties to the process and interacted directly with interested parties to gauge interest level and negotiate the terms of their respective bids. By participating in the negotiation of definitive documentation, FocalPoint effectuated improved terms and conditions of sale. FocalPoint played an active role in the auction of the HUD Division and was able to drive an increase in the purchase price. As a result of the efforts of FocalPoint, the Company was able to sell its three operating divisions for over $100 million in consideration, consisting of both cash and the assumption of liabilities.

Fleetwood has sold operating assets in three separate transactions

FocalPoint served as exclusive financial advisor to the Official Committee of Unsecured Creditors

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“Fleetwood faced financial problems due to the recent recession and we at FocalPoint helped the Company get creative during its Chapter 11 process to maximize value for all parties through three separate transactions. We helped execute an efficient process that ultimately prevented the loss of several key customer contracts and employee jobs.”

Nishen Radia
Managing Director, FocalPoint