Chronology of Events

Here's a brief summary of what to expect in the Chapter 11 and sale process. We cannot predict the time line for these activities. Champion is changing ownership; once the sale transaction is approved by the Court, Champion will no longer be part of the bankruptcy proceedings and will be owned by a new owner.

1. Champion Enterprises Inc. and its domestic operating subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

2. An automatic stay immediately goes into effect which prohibits, among other things, all actions against the Company to collect pre-petition claims which means if Champion owes a vendor for work completed or goods delivered before the filing date, the law prohibits us from paying them until after a plan of reorganization is approved by its creditors and the Court. That the plan either will set forth how such claims will be addressed or the Court grants special permission for such payment on the basis of motions filed by the Company.

3. Champion functions as a “debtor-in-possession.” During this period, daily operations will continue: plants, offices and corporate headquarters will remain open, employees will be paid, customers will be serviced, vendors will be paid for goods received after the filing date (and for goods received before the filing date pursuant to a specific court order), and transactions that occur in the normal course of business will continue as they did prior to the filing.

4. The Court establishes bid procedures including a bid deadline for “higher and better” offers.

5. Champion conducts an auction and determines the “highest and best” offer. A sale hearing is set by the Bankruptcy Court on the proposed successful bid.

6. The sale agreement is approved by the Bankruptcy Court and a transaction close date will be determined.

7. Upon confirmation of the sale transaction, Champion’s operations will be under new ownership.

8. Champion’s estate (which is made up of the remaining assets and liabilities not included in the sale) and advisors prepare a plan of reorganization for the settlement of the Champion estate.

9. The secured creditors, unsecured creditors, other stakeholders and Champion’s estate and advisors negotiate the final form of the plan of reorganization.

10. Champion’s estate files a disclosure statement and final plan of reorganization with the Court.

11. The Court approves the disclosure statement to permit creditors to vote on the plan.

12. The Court approves the company's plan of reorganization.