Former Monaco Coach gets preliminary support of $10 million settlement

By Kali Hays

New York, April 16 – The Chapter 7 trustee for MCC Corp., formerly Monaco Coach Corp., obtained preliminary approval of a $10 million Worker Adjustment and Retraining (WARN) Act class action settlement reached with former employees, according to a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

A final hearing on the settlement is set for May 21.

As previously reported, the company said the class representatives sued the MCC debtors for allegedly failing to provide notice required by the WARN Act and related state rules and laws before ordering mass layoffs and/or plant closings on March 2, 2009.

In exchange for a full release for any claim for damages under the WARN Act or similar state law, severance, back pay or other benefits arising from the mass layoffs and/or plant closings, MCC will allow a priority claim in the total amount of $10 million.

The claim will be distributed from a designated settlement fund established by class counsel.

MCC was formerly Monaco Coach Corp., a Coburg, Ore.-based designer, manufacturer and seller of motor coaches and towable recreational vehicles. The company filed for bankruptcy on March 5, 2009. The conversion to Chapter 7 occurred on June 29, 2011. The company’s Chapter 11 case number is 09-10750.

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