Beaudry RV, which has two dealerships in Arizona, has reached an agreement with its lenders that will allow it to emerge from Chapter 11 bankruptcy, potentially saving 180 jobs.
Saddled with about $14 million in debt tied to a real estate loan from Bank of America, Comerica Bank and Wells Fargo Bank, Beaudry RV filed for bankruptcy protection in November. But despite the action, the banks filed suit against Bob and Barbara Beaudry as well as other borrowers not tied to the bankruptcy, seeking to call in their personal guarantees on the real estate loan.
The original loan had been $42 million and is tied to six parcels of real estate in Arizona. Beaudry RV was unable to pay the balance or refinance the debt amid tight credit markets.
Under the reorganization plan, Beaudry RV will have 3 1/2 years to pay off the debt. During the first two years it will make monthly payments at prime rate plus 5 percent with a requirement to reduce the debt by $5 million, said attorney Michael McGrath.
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“And if we get it down by $5 million, we get another year and a half to pay them off,” he said.
Essentially, the deal gives Beaudry RV the gift of time.
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