Clayton Homes to Buy Oakwood Homes

Oakwood Homes Corp., Greensboro, N.C., has announced an agreement under which it would be acquired by Clayton Homes Inc., Knoxville, Tenn., for approximately $373 million in cash, subject to certain adjustments.Oakwood, which filed for Chapter 11 bankruptcy protection on Nov. 15, 2002, said the purchase is expected to be accomplished through an amendment to the company's reorganization plan, which is pending in the U.S. Bankruptcy Court for the District of Delaware. "Although we were poised to emerge from Chapter 11 as a stand-alone company, after considering Clayton's offer, the board and the creditors' committee decided that the cash recovery provided by the Clayton offer was in the best interests of the financial stakeholders," said Myles E. Standish, Oakwood's chairman and chief executive officer. Clayton is a builder, retailer, and financer of manufactured homes. Oakwood, a major manufacturer and lender in the manufactured housing industry, can be found online at http://www.oakwoodhomes.com.