Oregon Public Broadcasting

Monaco signed an agreement with school bus manufacturer Navistar to explore the possible sale of the RV maker’s major assets.

Monaco Coach says the deal could restart its ailing Coburg factory.

But two major banks remain opposed to the sale, and could file their formal objections in court this week. Ethan Lindsey reports.

Earlier this month, Monaco laid off more than 1000 workers at its Coburg factory.

That came as the company filed for Chapter 11 bankruptcy protection.

On Friday, a federal judge approved Monaco’s business plan while in bankruptcy.

Monaco says if it can stay afloat, it could sell a large part of its business to Chicago-based Navistar, for $50 million.

Monaco executives say a possible deal with Navistar is “very good news” and could get workers back on the job.

But analysts warn that may be too optimistic.

Frank Magdlen is an RV analyst with the Robins Group, in Portland. He says even if the deal goes through, Monaco won’t start rehiring hundreds of workers right away.

Frank Magdlen: “It’s really dicey trying to figure out when they would actually call people back to work."

In fact, Navistar just laid off more than 100 workers at a school bus factory in Arkansas.

Plus, the deal is far from done.

Monaco owes two banks more than $50 million, and those two banks have objected to a possible sale in bankruptcy court – they may prefer just selling Monaco off in pieces.

A Navistar spokesman says any discussions of a possible purchase were preliminary and  “non-binding.”

But analysts say if Navistar purchases Monaco for $50 million, it could be a bargain basement price.

Analyst Frank Magdlen says it’s a good investment strategy., if you have the money to do it.

Frank Magdlen: “It’s a Warren Buffet style of investing. Market conditions make things cheap in the short run, and the trouble is do you have enough cash flow to take you through the short run.”

Just two years ago, Monaco was raking in close to a billion dollars in revenue per year – and experts say the RV industry could grow again in the future.