Oregon Public Broadcasting

Wells Fargo Bank says a Junction City motor home manufacturer owes $8 million in unpaid debts.

The bank wants to seize assets from Country Coach, sell them off, and get some of its money back.

Ethan Lindsey reports the company’s owners are fighting for their corporate lives in bankruptcy court.

As of now, the motor home business looks completely wiped out.

More than a dozen RV companies in the U.S. and Canada have gone belly-up – or threaten to.

At its high point, manufacturers outside Eugene and in eastern Oregon employed 5000 workers.

Gas prices, tight credit, and the recession have all hurt.

But Country Coach says if it can reorganize under Chapter 11 bankruptcy, it can hang in there.

Frank Magdlen watches the RV industry for the Robins Group.

Frank Magdlen: “You have a struggle between the commercial lender that says you are in default. And we really don’t see in the near term you’regoing to have the cash flow to pay us. And they put them in bankruptcy. I think you’re going to see more firms go out of business.”

But Country Coach and Oregon’s other RV manufacturers got a bit of good news this week.

Springfield Democrat Peter Defazio says the Federal Reserve will allow motor home purchases as part of its most recent $200 billion consumer credit package.