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Bankruptcy Judge Approves Oregon RV Deal

Judge has given final approval to a deal between struggling RV manufacturer Country Coach and its main creditor regarding a $3.2 million revolving loan fund.

EUGENE, Ore. (AP) -- A bankruptcy judge has given final approval to a deal between struggling RV manufacturer Country Coach and its main creditor, Wells Fargo Bank.

The Register-Guard newspaper in Eugene reported the deal runs through the end of 2009. It will grant Country Coach access to a $3.2 million revolving loan fund, allowing it to sell from its Junction City factory, instead of through dealers.

U.S. Bankruptcy Judge Albert Radcliffe gave preliminary approval to the deal two weeks ago. Country Coach resumed production last week.

The company sought Chapter 11 bankruptcy protection earlier this year after it defaulted on an $8 million loan balance, idled its factory and faced a lawsuit from Wells Fargo. The bank sought to collect on the debt and liquidate Country Coach's assets.

The parties must update their plan before August 31.