Monday, September 12, 2016

What's Going on with the IBS Bankruptcy? UPDATE

I've been getting a lot of calls and emails today asking what is going on with the IBS Bankruptcy as it was supposed to have been finalized last Friday.

Well folks, here is what I know today.

The schedule of events for it are as follows:

*  Bid Deadline was September 9th. As far as I've heard, only Champion has placed a bid. (The auction did not happen on the 9th and was rescheduled. This pushed everything back a few days and we all know that 'time is money' in this industry)

*  Auction Date is September 14th

*  Sale Hearing (Not sure what this is) is scheduled for September 20th

*  Closing Date is October 3rd.

Here comes the fun part. If Champion is the winner, rumor has it that they will reopen the Liverpool plant sometime late October - early November. They hope to be building one floor a day by the end of December. But remember, there is a PA state holiday in November for all modular home factories called the first week of deer season.

Another part of the rumor is that Champion has a huge project coming for the first part of 2017 and either the Iowa or the Indiana plant will be opened to handle it. After that, who knows what will happen to these plants.

The fly in the ointment is the Mod-U-Kraf plant in Rocky Mount, Virginia that was building a few homes for their own builders and handling the overflow from the Liverpool production. With the Liverpool targeted at building only one floor a day, it doesn't sound like the Mod U Kraf factory will be opened anytime soon.

Let me know if you hear anything.


Anonymous said...

You are not Albert Einstein but I think you are correct in your assessment of what will happen next month.

Former Excel builders will not be happy with the new Excel.

Anonymous said...

Your Over Used Anicdote Reassures Everyone All Manufacturers are Otherwise Really Old News

Anonymous said...

Where are they going to find employees to reopen these plants?

Anonymous said...

i Agree with the Second post. Sounds like the Hay day of Old time volume Levels are Escaping some builders.

Roger said...

I am excited for old Excel factory to re-open and be backed by folks from the industry. I just know that with strong backing from Champion they will be back building an awesome product with some of the best minds and workers in the industry. Good luck to everyone at the old Excel / new Champion factory!!!!

Anonymous said...

Well said Roger. I am hearing thru the grapevine that Champion is going to let the old Excel factory go back to what they were good at: building custom modular homes.

Anonymous said...

The Liverpool plant could be the factory where Champion finally learns how to build custom modular homes. My hope is they let Aaron and the experienced production people show them how it can be done. My other hope is they don't try to homogenize it into just another Champion mixed sue factory.

Time will tell.

Anonymous said...

Wonder if HIG (private equity firm that presumably owns the real estate) will be selling to Champion? My understanding is that real estate was not part of bankruptcy proceedings. So any buyer of bankruptcy assets would have to negotiate with landlord to reopen any of the facilities in PA, Indiana, Iowa or Virginia.