Champion Enterprises Files for Chapter 11 to Restructure Debt

- Obtains $40 Million New Credit Facility

TROY, Mich., Nov. 15 /PRNewswire-FirstCall/ -- Champion Enterprises, Inc.
(NYSE: CHB), a leader in factory-built construction, today announced that it
and its domestic operating subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company is
taking this action to improve its capital structure and further strengthen its
competitive position. The Company's operations in the United Kingdom and
Canada were not included in and will not be impacted by the filing.

In conjunction with the filing, the Company has obtained a $40 million
debtor-in-possession (DIP) credit facility from certain of its current lenders
that will be available to fund post-petition operating expenses and to ensure
that it continues to meet its obligations to employees, customers, and trade
partners. A portion of these funds will be available for use outside the U.S.
to ensure the continued adequacy of working capital for the Company's non-U.S.
operations.

The Company expects that this restructuring will be accomplished through a
court-supervised sale of its operations. The Company chose to pursue a
broader sale process in which its lenders and others may participate after
opting not to accept a third party offer for the Company. To that end, the
Company's investment banker has already received initial indications of
interest from a number of parties expressing a desire to participate in this
sale process over the coming weeks.

"Our Company has operated for many years with a significant debt load. As
we've had to downsize to keep up with the declining markets, this debt has
become increasingly burdensome," said Champion Chairman, President and Chief
Executive Officer William C. Griffiths. "Despite our best efforts to
reposition the company for diversified growth, the continued challenging
economic conditions both here and abroad have negatively impacted our capacity
for debt.

"As a result, management and the Board decided that the Chapter 11 process
provides us with the most timely and orderly means to restructure our debt
obligations and facilitate a sale and recapitalization of the Company so we
can be best positioned to capitalize on future opportunities. Filing for
Chapter 11 will allow us to maintain our going concern value for the benefit
of our stakeholders while we address current market realities."

Mr. Griffiths noted that in response to the challenging housing market and
impaired capital markets, Champion has already successfully implemented a
number of initiatives aimed at improving operating performance, including the
reduction of overhead costs, closure or idling of 15 underperforming
manufacturing facilities in the U.S. since mid-2006, staff reductions at
operating plants to better match current demand levels, increased focus on
multi-family, military and commercial sales opportunities and enhancement of
single-family home product offerings.

"Our balance sheet is the problem, not our operations. The next step in our
reorganization is to restructure our balance sheet and position our company to
capitalize on the anticipated recovery in the residential and commercial
construction markets," said Mr. Griffiths.

The Company emphasized that daily operations are expected to continue
throughout the restructuring. The Company filed nearly 20 "first-day motions"
covering the continuation of employees and business operations, as well as
post-petition DIP financing, the continuation of supplier payments, customer
warranty programs and retailer rebate programs, and other case administration
matters. The Company anticipates that these first-day motions will be heard
this week. Pursuant to the relief requested in those motions, homes will be
sold, manufactured and delivered as normal and employees will be paid and
continue to receive the same benefits as before the filing.

"Despite the current challenges in our core markets, we still believe there
are considerable opportunities in the factory-built construction industry in
the future," said Mr. Griffiths. "Addressing our liabilities through the
Company's bankruptcy filing is the last step in a comprehensive restructuring
we began some time ago. We fully expect to proceed through this restructuring
swiftly and with the strong support of our lenders. Throughout the process we
will continue designing and manufacturing high quality products for our
retailers, builders and developers."

The Company filed its voluntary petitions in the U.S. Bankruptcy Court for the
District of Delaware in Wilmington.

For further information please contact the Company's information line at (877)
857-7554 or (248) 614-8390 for international callers, which is staffed live
Monday to Friday between 8 am and 6 pm eastern standard time or visit the
Company's restructuring website at www.championrestructures.com.

About Champion
Troy, Michigan-based Champion Enterprises, Inc., a leader in factory-built
construction, operates 27 manufacturing facilities in North America and the
United Kingdom distributing its products through independent retailers,
builders and developers. The Champion family of builders produces manufactured
and modular homes, as well as modular buildings for government and commercial
applications. For more information, please visit www.championhomes.com.

Forward-looking Statements
This news release contains certain statements, each of which could be
construed to be forward-looking statements within the meaning of the
Securities Exchange Act of 1934. Actual results may differ materially from
anticipated results due to certain risks and uncertainties, including but not
limited to: the potential adverse impact of the Chapter 11 Bankruptcy filing
on the Company's business, financial condition or results of operations,
including the Company's ability to maintain contracts, trade credit and other
customer and vendor relationships that are critical to its business and the
actions and decisions of the Company's creditors and other third parties with
interests in the Company's Chapter 11 proceedings; the Company's ability to
obtain court approval with respect to motions in the Chapter 11 proceedings
and to develop, prosecute, confirm and consummate one or more plans of
reorganization with respect to the Chapter 11 proceedings and to consummate
all of the transactions contemplated by one or more such plans of
reorganization. Additional risks include, among others: the prospect of
being delisted from the New York Stork Exchange or other national or regional
exchanges; the occurrence of any event, change or other circumstance that
could give rise to the termination of any DIP financing plans or support
agreements the Company has entered or may enter with its lenders or other
entities; general economic conditions in the markets in which the Company
operates, including changes in interest rates or currency exchange rates, the
financial condition of the Company's customers or suppliers; changes in
housing demands from the Company's current estimates; availability of
reasonable retailer and consumer financing; the outcome of customer
negotiations; the costs, timing and success of restructuring actions;
increases in the Company's warranty or product liability costs; risks
associated with conducting business in foreign countries; competitive
conditions impacting the Company's key customers and suppliers. These risk
factors are discussed in the Company's most recently filed Form 10-Q, 10-K and
other filings with the Securities and Exchange Commission, in each case under
the section entitled "Forward-Looking Statements," or "Risk Factors."

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.

SOURCE Champion Enterprises, Inc.

Anita-Marie Laurie or Maya Pogoda, both of Sitrick And Company,
+1-310-788-2850, for Champion Enterprises, Inc.