Wednesday, November 15, 2006
Sunline Coach Company Closes
A letter sent to all dealers today from attorney Anthony Giannascoli broke the news. Below is the text:
"This letter will serve as notice to you that Sunline Coach Company has engaged in a plant shutdown and is closing its doors and ceasing all on-going business operations."
"For some time, Sunline has been actively seeking capital from potential equity investors and venture capital firms. Sunline has also been negotiating with potential buyers in an attempt to avoid a shutdown. In today's business environment, these efforts have proven very difficult and in the end unsuccessful. As of the end of business Thursday, Nov. 9, 2006, Sunline determine that it was regrettably unable to reach and agreement with a final buyer to avoid a shutdown. Notice of the shutdown was provided to Sunline employees the next day, and this communication is being forwarded to you as soon as the circumstances have permitted."
"As a result of the shutdown and termination of operations, Sunline anticipates that its primary secured lender will require a liquidation of all of Sunline's assets. Sunline will attempt to maximize the proceeds from this anticipated liquidation. Sunline also has a second secured credit. It is anticipated that all liquidation proceeds will be used to satisfy Sunline's secured debts with these two creditors."
“Sunline does not anticipate that the liquidation of its assets will produce sufficient proceeds to enable Sunline to satisfy any of its unsecured debts. We regret to inform you that as a result of the shutdown, Sunline will no longer exist as a going concern to satisfy any warranty claims."
"As you can imagine, the shutdown of Sunline, with its 40 plus year history, was an extremely difficult decision and all the management oat Sunline regret any difficulties you, as a dealer, may experience as a result of Sunline's closure and liquidation. If you have any questions, please do not hesitate to contact me."
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