Pedata RV Clarifies For The RV Consumer The Difference Between Chapter 7 And Chapter 11 Bankruptcy Dealing With RV Manufactures

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Pedata RV seeks to clarify the difference between chapter 7 and chapter 11 bankruptcy. Though bankruptcy is not what you want to see happen to a favored RV manufacturer, chapter 11 does provide these corporations a way to pull through their current unmanageable debt.

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Both companies are saying that they are committed to maintaining dealer and customer relationships during this restructuring period. All of us in the industry encourage them to fulfill that statement. Personally I think they will do so, it is in their best interest to do so, especially if they are trying to find buyers for the business.

Two large RV makers succumbed to the current downed economy this week, Fleetwood Enterprises Inc. and Monaco Coach Corp. both filed for chapter 11 bankruptcy protection. What this means to customers of these manufacturers has yet to be seen. However, chapter 11 does give these manufactures a chance to survive.

Chapter 11 bankruptcy, also referred to as rehabilitation bankruptcy, provides the business an opportunity to reorganize its debt and try to reshape itself into an profitable entity. The business attempts to re-negotiate its debt with creditors and must continue to pay the debt back through future earnings. Chapter 11 affords a business the chance to continue operating in an efficient manner with an appointed trustee supervising the assets of the debtor. It is usually filed by corporations who need time to restructure debt that has become unmanageable.

Chapter 7 backruptcy is for a corporation, company or individual and is referred to as straight bankruptcy or liquidation bankruptcy. A company experiencing this form of bankruptcy means they are past the stage of reorganization and must sell off any applicable assets in order to settle debts with creditors. A business unsuccessful in Chapter 11 will file for Chapter 7, halt and business and liquidate.

Both Monaco and Fleetwood are trying to strengthen their balance sheets. Fleetwood would like to free itself from travel trailer division and continue production of motor homes and manufactured homes. Monaco is seeking buyers for parts or all of the company. Clint Ethington of Pedata RV Center comments "Both companies are saying that they are committed to maintaining dealer and customer relationships during this restructuring period. All of us in the industry encourage them to fulfill that statement. Personally I think they will do so, it is in their best interest to do so, especially if they are trying to find buyers for the business."

For More Information:
For more information on Pedata RV Center or current trends in the RV industry contact Clint Ethington, General Manager, at clint (at) pedatarvcenter (dot) com or by phone at: 1-888-545-8314 or 520-807-0900. Or visit Pedata RV Center online at http://www.pedatarvcenter.com.

Contact:
Clint Ethington
Pedata RV Center
http://www.PedataRV.com
1-888-545-8314 or 520-807-0900
Clint (at) pedatarvcenter (dot) com

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