WARRENVILLE, Ill. — Navistar International has issued a non-binding letter of intent to purchase certain assets and assume certain liabilities of recreational vehicle manufacturer Monaco Coach Corp.

Monaco, one of North America’s leading recreational vehicle manufacturers, filed for Chapter 11 bankruptcy relief. It has manufacturing facilities in Oregon and Indiana and offers a variety of RVs, from entry-level priced towables to custom-made luxury models.

"If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business," said Jack Allen, president of Navistar’s North American truck group. "Any asset purchase would fall within our current capital expenditure program for fiscal 2009."

The letter of intent contemplates that Navistar and Monaco will work to sign a definitive asset purchase agreement by mid-April.