700 Monaco Coach shareholders are likely stuck holding an empty bag of shares of stock after the company terminated them and filed for bankruptcy in March. Everyone agrees the stock has become virtually worthless.
When there's a bankruptcy, shareholders often don't get anything because there is not enough money to pay the bills, let alone return anything to the shareholders, bankruptcy experts generally agree.
In its bankuptcy papers, Monaco said that as of Sept. 27 it had more assets than liabilities — $442.1 million in assets and $208.8 million in debt. However the company has not yet provided a complete, current list of assets and debts that explains how it arrived at those numbers.
For now, Illinois-based Navistar International Corp. is reported to have signed a "nonbinding letter of intent" to buy Monaco’s core RV assets for up to $50 million, if the sale is approved by the bankruptcy court. If so, it could be completed by late June, according to documents Monaco filed with the U.S. Bankruptcy Court.
There's still no word on warranty rights under the proposed sale, but you can bet that the big corporations aren't about to let those survive the bankruptcy filing in all probability because of the high risk and expense that would be carried over. Maybe, but maybe not.
Burdge Law Office
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