<PAGE> 1
[CHAMPION ENTERPRISES, INC. LETTERHEAD]
FOR IMMEDIATE RELEASE
INVESTOR AND MEDIA CONTACTS:
Anthony S. Cleberg Colleen T. Bauman
Chief Financial Officer Investor Relations
(248) 340-9090 (248) 340-7731
CHAMPION ENTERPRISES, INC.
ANNOUNCES AMENDMENT
TO BANK CREDIT FACILITY
$20 MILLION FLOOR PLAN LINE OF CREDIT ALSO APPROVED
AUBURN HILLS, MICH., NOVEMBER 21, 2000--CHAMPION ENTERPRISES, INC.
(NYSE: CHB), the nation's leading housing manufacturer, today announced that it
has amended its bank credit facility, which is a five-year revolving credit
agreement entered into in 1998. The company currently has no borrowings under
the facility and $33 million of letters of credit outstanding to support
insurance obligations and industrial revenue bond financing.
Executive Vice President and Chief Financial Officer, Anthony S.
Cleberg, commented, "We are pleased to announce this amendment, which reflects
our bank group's continued support and confidence in us. We are also encouraged
that our efforts to diversify our floor plan borrowings have resulted in a $20
million floor plan line of credit with Deutsche Bank. We continue to work with
other lenders to further diversify our floor plan financing."
Under the terms of the amended facility, through February 28, 2001
Champion has $45 million of availability under a revolving line of credit, with
a $35 million sublimit for letters of credit and a $10 million sublimit for cash
borrowings thereunder. From March 1, 2001 through May 4, 2003, the Company's
availability under the facility increases to $75 million, with a $35 million
sublimit for letters of credit. The facility may be increased to $90 million
upon approval by a majority of the Company's banks. Availability under the line
is subject to a borrowing base. Certain of Champion's assets are pledged to
support amounts outstanding under the amended facility. The agreement contains
covenants which, among other things, limit additional indebtedness and capital
expenditures, and require maintenance of certain financial performance levels
and a minimum net worth.
(more)
<PAGE> 2
CHB/2
"Champion is focused on liquidity, working capital turns, and cost
reductions during challenging current market conditions. We are pleased to
report that since third quarter end we have reduced our floor plan borrowings by
$9 million and as of November 4, 2000 had $120 million outstanding. In the first
nine months of 2000, we generated $82 million in cash flow from operations and
are working to strengthen our balance sheet. This amended facility and floor
plan line of credit should provide us with short-term liquidity and flexibility
to determine the most beneficial long-term capital structure," Cleberg
concluded.
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
the industry's leading manufacturer and has produced more than 1.5 million homes
since the company was founded. The company operates 53 homebuilding facilities
in 17 states and western Canada. In addition to 276 company-owned retail stores,
its homes are sold by more than 1,000 Alliance of Champions locations. Further
information can be found at the company's website, www.championhomes.net.
This news release contains certain statements, including assessments of
short-term and long-term prospects, liquidity, and capital structure, which
could be construed to be forward looking statements within the meaning of the
Securities and Exchange Act of 1934. These statements reflect the company's
views with respect to future plans, events and financial performance. The
company does not undertake any obligation to update the information contained
herein, which speaks only as of the date of this press release. The company has
identified certain risk factors which could cause actual results and plans to
differ substantially from those included in the forward looking statements.
These risk factors include fluctuations in the capital markets and other factors
as discussed in the company's most recently filed Form 10-K, and this discussion
regarding risk factors is incorporated herein by reference.
*****
