Exhibit 5.1
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Skadden, Arps, Slate, Meagher & Flom LLP |
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Four Times Square |
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New York, New York 10036 |
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October 29, 2007 |
Champion Enterprises, Inc.
2701 Cambridge Court
Suite 300
Auburn Hills, MI 48326
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Re:
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Champion Enterprises, Inc. Registration Statement on Form S-3 |
Ladies and Gentlemen:
We have acted as special New York counsel to Champion Enterprises, Inc., a Michigan
corporation (the Company), in connection with the registration statement on Form S-3 (the
Registration Statement) to be filed by the Company with the Securities and Exchange Commission
(the Commission) on the date hereof under the Securities Act of 1933, as amended (the Act). The
Registration Statement relates to the issuance and sale by the Company from time to time, pursuant
to Rule 415 of the rules and regulations promulgated under the Act, of an unspecified amount of
securities of the Company for unspecified aggregate proceeds, consisting of: shares of common stock
of the Company, $1.00 par value per share (the Common Stock); shares of preferred stock of the
Company, no par value, to be issued in one or more series (the Preferred Stock); senior debt
securities (the Senior Debt Securities), to be issued in one or more series under the senior
indenture, proposed to be entered into between the Company and Wells Fargo Bank, N.A., as trustee
(the Trustee), the form of which is filed as an exhibit to the Registration Statement (Senior
Indenture) and subordinated debt securities (together with the Senior Debt Securities, the Debt
Securities), to be issued in one or more series under the subordinated indenture, proposed to be
entered into between the Company and the Trustee, the form of which is filed as an exhibit to the
Registration Statement (the Subordinated Indenture and, together with the Senior Indenture, the
Indentures); and warrants (the Warrants) to purchase Common Stock, Preferred Stock, Debt
Securities or other securities of the Company as shall be designated by the Company at the time of
the offering issued pursuant to one or more warrant agreements proposed to be entered into between
the Company and warrant agents to be named. The Common Stock, Preferred Stock, Debt Securities and
Warrants are collectively referred to herein as the Offered Securities.
This opinion is being delivered in accordance with the requirements of Item 601(b)(5) of
Regulation S-K under the Act.
In connection with this opinion, we have examined originals or copies, certified or otherwise
identified to our satisfaction, of:
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(i) |
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the Registration Statement relating to the Offered Securities; |
Champion Enterprises, Inc.
October 29, 2007
Page 2
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(ii) |
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the form of the Senior Indenture between the Company and the Trustee; |
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(iii) |
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the form of the Subordinated Indenture between the Company and
the Trustee; and |
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(iv) |
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the Statements of Eligibility and Qualification on Form T-1
under the Trust Indenture Act of 1939, as amended (the Trust Indenture Act),
of the Trustee, filed as exhibits to the Registration Statement. |
We have also examined originals or copies, certified or otherwise identified to our
satisfaction, of such records of the Company and such agreements and certificates of public
officials, certificates of officers or other representatives of the Company and others, and such
other documents, certificates and records as we have deemed necessary or appropriate as a basis for
the opinions set forth herein.
In our examination, we have assumed the legal capacity of all natural persons, the genuineness
of all signatures, including endorsements, the authenticity of all documents submitted to us as
originals, the conformity to original documents of all documents submitted to us as facsimile,
electronic, certified, conformed or photostatic copies and the authenticity of the originals of
such copies. In making our examination of executed documents or documents to be executed, we have
assumed that the parties thereto, including the Company, had or will have the power, corporate or
other, to enter into and perform all obligations thereunder.
We have assumed the due authorization by all requisite action, corporate or other, and the
execution and delivery by such parties of such documents and, except to the extent expressly set
forth in Paragraph 1 below, the validity and binding effect thereof on such parties. We have
assumed that the Company has been duly organized and is and will continue to be validly existing in
good standing, and has and will continue to have the requisite legal status and legal capacity,
under the laws of the State of Michigan, and that the Company has complied and will comply with all
aspects of applicable laws of jurisdictions other than the United States of America and the State
of New York in connection with the transactions contemplated by the Indentures, any supplemental
indentures thereto and the Registration Statement. We have assumed that the Indentures will be
executed and delivered in substantially the forms reviewed by us. We have assumed that the choice
of New York law to govern the Indentures and any supplemental indentures thereto is a valid and
legal provision. We have also assumed that the Indentures and any supplemental indentures thereto
will be duly authorized, executed and delivered by the Trustee and the Company, and that any Debt
Securities that may be issued will be manually signed or countersigned, as the case may be, by duly
authorized officers of the Trustee. We have assumed that the choice of currency in which any
Offered Debt Securities (as defined below) are denominated does not contravene any exchange control
or other laws of the nation or supranational organization issuing such currency. As to any facts
material to the opinions expressed herein which were not independently established or verified, we
have relied upon oral or written statements and representations of officers and other representatives of
the Company and others.
Champion Enterprises, Inc.
October 29, 2007
Page 3
In relation to the opinion set forth in Paragraph 1 below, we bring to your attention Title 16
of Article 5 of the New York General Obligations Law (the GOL). Title 16 of the GOL provides,
among other things, that on the implementation from time to time of Economic and Monetary Union in
the Member States of the European Union in accordance with the Treaty on European Union by the
adoption of participating Member States of a single currency (the Euro), if the subject or medium
of payment of a contract, security or instrument is a currency that has been substituted or
replaced by the Euro, the Euro will be a commercially reasonable and substantial equivalent that
may be either (a) used in determining the value of such currency or (b) tendered in accordance with
the regulations adopted by the Council of the European Union. In addition, Title 16 of the GOL
provides that none of (i) the introduction of the Euro, (ii) the tendering of Euros in connection
with any obligation in accordance with clauses (a) or (b) of the immediately preceding sentence,
(iii) the determining of the value of any obligation in accordance with clauses (a) or (b) of the
immediately preceding sentence or (iv) the calculating or determining of the subject or medium of
payment of a contract, security or instrument with reference to interest rate or other basis has
been substituted and replaced due to the introduction of the Euro and that is a commercially
reasonable substitute and substantial equivalent, shall have either the effect of discharging or
excusing performance under any contract, security or instrument or give a party the right to
unilaterally alter or terminate any contract, security or instrument. Title 16 of the GOL further
provides that its provisions shall not alter or impair and shall be subject to any agreements
concerning the Euro between the parties. We note, however, that to the best of our knowledge,
there has been no judicial consideration of Title 16 of the GOL by a New York court and, in the
absence of any judicial authority, we are unable to express a view as to the interpretation or
application a New York court may give to Title 16 of the GOL.
Our opinions set forth below are limited to the laws of the State of New York that, in our
experience, are normally applicable to debt securities of the type covered by the Registration
Statement and, to the extent that judicial or regulatory orders or decrees or consents, approvals,
licenses, authorizations, validations, filings, recordings or registrations with governmental
authorities are relevant, to those required under such laws (all of the foregoing being referred to
as Opined on Law). We do not express any opinion with respect to the law of any jurisdiction
other than Opined on Law or as to the effect of any such non-Opined on Law on the opinions herein
stated. The Offered Securities may be issued from time to time on a delayed or continuous basis,
and this opinion is limited to the laws, including the rules and regulations, as in effect on the
date hereof, which laws are subject to change with possible retroactive effect.
Based upon and subject to the foregoing and to the other qualifications and limitations set
forth herein, we are of the opinion that:
1. With respect to any series of Debt Securities to be offered by the Company pursuant to the
Registration Statement (the Offered Debt Securities), when (i) the Registration Statement, as
finally amended (including all necessary post-effective amendments), has become effective under the
Act and the applicable Indenture has been qualified under the Trust Indenture Act; (ii) an
appropriate prospectus supplement or term sheet with respect to the
Champion Enterprises, Inc.
October 29, 2007
Page 4
Offered Debt Securities has been prepared, delivered and filed in compliance with the Act and
the applicable rules and regulations thereunder; (iii) if the Offered Debt Securities are to be
sold pursuant to a firm commitment underwritten offering, the underwriting agreement with respect
to the Offered Debt Securities has been duly authorized, executed and delivered by the Company and
the other parties thereto; (iv) the Board of Directors, including any appropriate committee
appointed thereby, and appropriate officers of the Company have taken all necessary corporate
action to approve the issuance and terms of the Offered Debt Securities and related matters; (v)
the applicable Indenture and any supplemental indenture in respect of such Offered Debt Securities
has been duly authorized, executed and delivered by each party thereto; (vi) the terms of the
Offered Debt Securities and of their issuance and sale have been duly established in conformity
with the applicable Indenture and any supplemental indenture to be entered into in connection with
the issuance of such Offered Debt Securities so as not to violate any applicable law, the Restated
Articles of Incorporation of the Company as then in effect (the Articles) or the By-laws of the
Company as then in effect (the By-laws), or result in a default under or breach of any agreement
or instrument binding upon the Company and so as to comply with any requirement or restriction
imposed by any court or governmental body having jurisdiction over the Company; and (vii) the
Offered Debt Securities have been issued in a form that complies with the applicable Indenture and
have been duly executed and authenticated in accordance with the provisions of the applicable
Indenture and any supplemental indenture to be entered into in connection with the issuance of such
Offered Debt Securities and duly delivered to the purchasers thereof upon payment of the
agreed-upon consideration therefor, the Offered Debt Securities (including any Debt Securities duly
issued upon conversion, exchange or exercise of any Debt Securities, Preferred Stock or Warrants),
when issued and sold in accordance with the applicable Indenture and any supplemental indenture to
be entered into in connection with the issuance of such Debt Securities and the applicable
underwriting agreement, if any, or any other duly authorized, executed and delivered valid and
binding purchase or agency agreement, will be valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective terms, except to the extent
that enforcement thereof may be limited by (a) bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws now or hereafter in effect relating to creditors
rights generally, (b) general principles of equity (regardless of whether enforceability is
considered in a proceeding at law or in equity), (c) public policy considerations which may limit
the rights of parties to obtain remedies, (d) waivers of any usury defense contained in the
applicable Indenture or Offered Debt Securities which may be unenforceable, (e) requirements that a
claim with respect to any Offered Debt Securities denominated in a currency, currency unit or
composite currency other than United States dollars (or a judgment denominated other than in United
States dollars in respect of such claim) be converted into United States dollars at a rate of
exchange prevailing on a date determined pursuant to applicable law, and (f) governmental authority
to limit, delay or prohibit the making of payments outside the United States or in foreign
currencies, currency units or composite currencies.
In rendering the opinions set forth above, we have assumed that the terms of the Offered Debt
Securities will have been established so as not to, and that the execution and delivery by the
Company of the Indentures and the performance by the Company of its
Champion Enterprises, Inc.
October 29, 2007
Page 5
obligations thereunder, will
not, violate, conflict with or constitute a default under (i) any agreement or instrument to which
the Company is subject (except for those agreements and instruments that are listed on the Exhibit
Index in Part II of the Registration Statement), (ii) any law, rule or regulation to which the Company is subject, (iii) any judicial or regulatory
order or decree of any governmental authority or (iv) any consent, approval, license, authorization
or validation of, or filing, recording or registration with any governmental authority. We do not
express any opinion as to whether the execution or delivery by the Company of either Indenture or
the performance by the Company of its obligations thereunder will constitute a violation of, or a
default under, any covenant, restriction or provision contained in any agreement or instrument to
which the Company is subject with respect to financial ratios or tests or any aspect of the
financial condition or results of operations of the Company or any of its subsidiaries.
We hereby consent to the filing of this opinion with the Commission as an exhibit to the
Registration Statement. We also hereby consent to the use of our name under the heading Legal
Matters in the prospectus which forms a part of the Registration Statement. In giving this
consent, we do not thereby admit that we are within the category of persons whose consent is
required under Section 7 of the Act or the rules and regulations of the Commission promulgated
thereunder. This opinion is expressed as of the date hereof unless otherwise expressly stated, and
we disclaim any undertaking to advise you of any subsequent changes in the facts stated or assumed
herein or of any subsequent changes in applicable laws.
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Very truly yours,
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/s/ Skadden, Arps, Slate, Meagher & Flom LLP
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