EUGENE - Lawyers are trying to work out a deal to get one of Lane County's troubled RV manufacturers back in production.

The idea is a limited restart of the production line at Country Coach's Junction City plant, with the company selling one or two vehicles a week directly from the plant and putting as many as 100 workers back to work, the Register Guard newspaper of Eugene reported.

The company is in federal bankruptcy court, where Judge Albert Radcliffe has delayed a decision on a proposed settlement agreement until the parties work out unresolved issues.

The Country Coach plant and 500 employees have been idle since early December.

Lawyers for Country Coach, Wells Fargo Bank, the federal government and unsecured creditors told Radcliffe they hope to give him an agreement by Thursday.

Negotiations conducted between hearings on Monday centered on a plan to include a $3.2 million revolving loan from Wells Fargo that would allow Country Coach to operate for three to four weeks.

"There is a strong sense that Country Coach needs to restart quickly if it wants to restart successfully," the company's attorney, David Levant of the Portland firm Stoel Rives, told the judge.

After the interim period, a permanent restructuring plan would take effect.

Lawyers for the government and for a committee of unsecured creditors told the judge Monday they wanted more time to read a 158-page document on a financing agreement.

"I think there's a lot of work to be done yet on this order before it can pass muster," said Doug Schultz of Eugene, representing the creditors.

Recommended for you

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.