Oakwood Homes gets enough votes to approve reorganization plan

By Jeff Pines

Washington, March 22 - Oakwood Homes Corp. said five of nine classes eligible to vote on its amended reorganization plan approved the plan.

A hearing on confirming the plan is expected to held later this month, the company said in a news release.

Under the plan, Oakwood's non-cash assets would be sold to Clayton Homes, Inc. as laid out in an asset purchase agreement. Clayton is a Berkshire Hathaway Inc. subsidiary. It agreed to pay $373 million for the assets.

If the sale is not completed, Oakwood would be reorganized as a standalone entity with all of the reorganized company's common stock going to its pre-Chapter 11 creditors.

Greensboro, N.C.-based Oakwood filed for Chapter 11 protection on Nov. 15, 2002. It builds, sells and finances factory-built homes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.