Earlier this month I reported that Riverside, California-based MVP RV had shut down and would be sold off amid a legal dispute pitting one foreign investor against others.
The dispute involved a group known as Fadar International and Chinese businessman Winston Chung over the company’s ownership.
Fadar has accused Chung in a lawsuit of crafting a fraudulent document claiming full ownership of the RV maker, one of a few manufacturing companies he has invested in Southern California.
Chung, who had been credited for saving the company from closure in 2009, was named chairman of the board of the company and later pledged a $310 million investment in the company to produce $5 billion worth of recreational vehicles to sell in China, including all-electric models, a plan that earned the company a trip to Washington, D.C.
The company owes creditors $37 million, including Fadar’s investors.
While the company’s ownership is unclear, Fadar managed to shut down the company on December 12 and assigned all of its assets to Credit Management Association (CMA), a private, non-profit, liquidation firm.
Jaime Martinez, left, and Horasio Hermosillo apply glue that will bond a rubber roof to a trailer at MVP RV. (Source: pe.com)
MVP RV has not filed for bankruptcy.
The company laid off its entire workforce of about 200 people when it closed.
MVP RV’s assets and real estate holdings will be auctioned April 19 starting at 11:30 a.m.
A notice advertising the auction has been posted on the website of Credit Management Association, which was given control of the company’s assets in mid-December.
Up for sale are two industrial buildings, a total of 460,570 square feet of space that sit on 1.6 million square feet of property within the boundary of Jurupa Valley, adjacent to Riverside.
The land and buildings are worth $20 million, according to the auction notice.
The buildings and property had once belonged to longtime RV-maker Fleetwood Enterprises before it filed for bankruptcy three years ago.
MVP RV bought it for $18.6 million in July 2010.
Other items included in the auction include factory equipment, inventory, office space, and rights to MVP RV’s intellectual property, according to Credit Management’s notice.
Interested buyers with cash would make their bids on site at the company’s headquarters at 5300 Via Ricardo in Jurupa Valley.
Vicente Alfaro, right, and other workers at MVP RV in Riverside, work on trailers in this file photo. (Source: pe.com)
Bidders can get a preview of the auction items in person during the two days prior to the sale.
Click here to read more about MVP RV.
Details
MVP RV’s assets and real estate holdings are set to be auctioned.
Valued at $20 million, the holdings include two industrial steel buildings totaling 460,570 square feet on 34 acres of property zoned M-1.
When: April 19 starting at 11:30 a.m.
Previews: April 17 and 18 from 11:00 a.m. to 3:00 p.m.
Where: 5300 Via Ricardo, Riverside, California
What: Two buildings, factory equipment, intellectual property
Additional information: cmaauctions.com
Worth Pondering…
You don’t pay the price for success. You pay the price for failure.
—Zig Ziglar