Cavalier Homes shareholder group seeks support for slate on May 19

By Lisa Kerner

Charlotte, N.C., May 4 - The Cavalier Homes Committee for Change once again asked Cavalier Homes, Inc. shareholders to elect the dissident group's slate of director nominees at the annual meeting on May 19.

The group, with a 9.6% stake in Cavalier, said it is nominating Michael R. O'Connor, Kenneth E. Shipley and Curtis D. Hodgson for election.

O'Connor is a former field manager for mobile and manufactured home company Clayton Mobile Homes. Shipley and Hodgson are co-founders of mobile home financing and manufacturing company Legacy Housing, Ltd.

Hodgson previously denied that Legacy is interested in pursuing a merger at this time with Cavalier, an Addison, Ala., manufactured home company.

"In our opinion, over the last ten years, this [Cavalier's] self-proclaimed 'proactive' board has overseen the dwindling of Cavalier's independent dealer base, massive declines in quarterly revenues by approximately 85%, cumulative losses mounting to over $75 million, and the disintegration of total assets from approximately $244 million to $76 million," the shareholder group said in a Monday letter to shareholders.

According to the Committee for Change, it is seeking minority representation on the Cavalier board to protect its investment as well as the investment of all of the company's stockholders.

"Our committee's plan for restoring profitability to the company includes, among other things, taking real steps to expand into retail and wholesale floor plan financing and rebuilding the company's brand names," the letter said.

The shareholder group said previously it was disappointed with Cavalier's first-quarter financial results.

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