posted on March 11, 2011 01:00
Fleetwood Homes Inc. is a step closer to acquiring the assets of Dallas-based Palm Harbor Homes Inc., which filed for Chapter 11 bankruptcy in November.
Palm Harbor voluntarily went into bankruptcy protection with an agreement to be acquired by an arm of Fleetwood. On Tuesday, Fleetwood won a bankruptcy auction for $83.9 million. The judge in the case is set to consider the deal on Friday.
Riverside, Calif.-based Fleetwood has said it will use cash on hand, as well as equity from its co-parent companies, Cavco Industries Inc. and Third Avenue Value Fund, to complete the purchase.
Palm Harbor Homes blamed poor conditions in the modular home construction industry in its Nov. 29 filing. The filing named all of Palm Harbor's domestic subsidiaries, including Palm Harbor Manufacturing LP, Palm Harbor Albemarle LLC, Palm Harbor Real Estate LLC, Palm Harbor GenPar LLC and Nationwide Homes Inc.
3/2/11, Dallas Business Journal