Letters to Star Fleet Customers
November 17, 2009
Dear Customer,
We are pleased to report that during first-day hearings today in our voluntary Chapter 11 case, the Court approved our request to continue to honor our normal business commitments such as customer warranties and service obligations, promotional programs, customer and engineering deposits and the like, consistent with our current practices.
In addition, we received court approval to use up to approximately $31 million of our $40 million debtor-in-possession (DIP) facility on an interim basis pursuant to the terms of the facility. This interim financing gives the Company the liquidity and resources to continue to purchase goods and services and fund operations. The final hearing on use of the entire DIP facility is scheduled for Thursday, December 10, 2009.
A copy of our public announcement is enclosed. The Company filed its voluntary petitions in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The cases are being jointly administered under case number 09-14019.
We will continue to keep you informed as to the progress of our reorganization. We thank you for your continued support and trust that, going forward, we can continue to build on our working relationship to create long-term opportunities for our mutual success.
If you have any additional questions, please feel free to call our restructuring information line at (877) 857-7554 or (248)-614-8390 if you are calling from outside the United States or visit the Company’s restructuring website at www.championrestructures.com.
Sincerely,
William C. Griffiths
Chairman, President and Chief Executive Officer
Champion Enterprises, Inc.
November 15, 2009
Dear Star Fleet Customer:
Because of our valued relationship, I wanted to tell you directly about important steps our parent company has taken to improve its capital structure and further strengthen its competitive position.
Today Champion Enterprises, Inc. and its domestic operating subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. As a wholly-owned subsidiary of Champion, Star Fleet, Inc. is included in the filing.
Let me be very clear. This does not mean that Champion or Star Fleet is going out of business. The Company has chosen to use the Chapter 11 process because it is the most orderly and efficient way to address our capital structure and to facilitate a sale and recapitalization while normal operations continue. We plan to continue to fulfill our customer orders with safe, on-time delivery of products. The Company expects that the restructuring will be accomplished through a court-supervised sale of its operations.
Champion has sufficient resources to meet its ongoing obligations. The Company obtained a $40 million loan from certain of its current lenders. Access to this financing, which requires court approval, means Champion and in turn Star Fleet, has the ability to pay its vendors, employees and independent contractors in the ordinary course of business.
With respect to our business relationship, you should see no change in our dealings. Star Fleet remains committed to providing our customers with outstanding customer service now and in the future.
For your information, a copy of the public announcement of our restructuring is enclosed. If you have any questions about our parent company’s restructuring, please feel free to contact our Restructuring Information Line at (877) 857-7554 or (248) 614- 8390 for international callers or you may access additional information at www.championrestructures.com.
On behalf of everyone at Star Fleet, I’d like to say thank you for your business. Please feel free to contact me if you have any questions.
Sincerely,
Joel Pladson
President
Star Fleet, Inc.