Cavalier Homes shareholder group wants stockholder list, seeks to put three on company's board

By Lisa Kerner

Charlotte, N.C., March 12 - A group of Cavalier Homes, Inc. shareholders is demanding a stockholder list in connection with its nomination of three candidates for election to the company's board of directors at the 2009 annual meeting.

The group, with a 9.5% ownership interest in Cavalier Homers, has nominated Michael R. O'Connor, Kenneth E. Shipley and Curtis D. Hodgson for election in opposition to three incumbent board members.

O'Connor, currently retired, is a former field manager for Clayton Mobile Homes, a national mobile and manufactured home company.

Shipley and Hodgson co-founded Legacy Housing, Ltd., a mobile home financing and manufacturing company.

The group said it believes Cavalier Homes' recently announced plan to expand the board's size and appoint three new directors is in response to the shareholders' nominations.

"While we believe the board could benefit from new qualified directors with industry experience, we unfortunately believe the addition of these directors, with little or no experience in the manufactured housing industry, was an attempt to further entrench the board and is a 'smoke screen' to avoid addressing our concerns with Cavalier Homes' continued poor performance," Shipley said in a news release.

According to the shareholder group, Cavalier Homes should refocus its business on wholesale and retail lending.

As previously reported, Hodgson and Shipley, who also operates manufactured homes business Bell Mobile Homes, proposed a possible merger between Legacy and Cavalier Homes in June 2008 but later abandoned the proposal.

More recently, Hodgson objected in January to the proposed sale of Cavalier Homes' subsidiary, CIS Financial Services Inc.

Cavalier Homes is an Addison, Ala., manufactured home company.

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