Blue Bird Sale Again

[dentmac]

Hi,
Perhaps a little tough on CCW.
The Bluebird Bankruptcy was one of the shortest in US history (36 hours) It was obviously prearranged restructuring with Cerberus spinning off Coachworks to CCW.
Then BB tried to stick CCW with the recall costs and more. CCW put a lot in , including legals. With the accidents , BB finally had to take responsibility. The axle mess with BB never really trying for the new axle promised and realization that the bones of the 450 were a problem, CCW pulled the plug before they pored in more. Redesign of the front structure to accept a higher capacity axle and then its design was no doubt thought to be prohibitive. Add in the recessional atmosphere.... In their bankruptcy, CCW sued BB for $5 million for non disclosure. That didn't go far as BB had the contract bullet proof .
New lawsuits would certainly hurt going public.
No stock for me . Maybe short!!

(09-27-2014 12:51)davidbrady Wrote:  Hi Greg,

I think your neighbors paid something like $5M for it. We should have gathered up some investors, bought it and mothballed it pending recovery from the great crash of 2008. With such a paltry sum at stake, my guess is it was too easy for them to fold-up shop, auction off, and walk when times got hard. No staying power and little skin in the game.

Cerberus paid $165M for BB back in 2006. They split off Wanderlodge and they survived the crash, they also assumed all of BB's debt. The "IPO" gave them something like $255M cash with $235M of debt assumed by BB.