With the largest motor homes selling in the low-to-mid six figures, it’s no wonder that RV manufacturers would see slumping sales in this economy.

An Oregon RV maker, Country Coach LLC, has been hit hard by the recession and late last year mothballed its operations and terminated many of its employees. Now Country Coach is being sued by a creditor in federal district court seeking to recover a loan. But Country Coach’s majority-owners are trying to block that litigation through an involuntary Chapter 11 bankruptcy proceeding.

Greenberg Traurig partner David Kurzweil in Atlanta is representing the suing creditor, Wells Fargo Bank.

Last week, the equity investors of Country Coach filed an involuntary Chapter 11 proceeding against Country Coach in U.S. Bankruptcy Court for the District of Oregon. Those investors include majority-owner Riley Investment Management LLC, which had acquired Country Coach in 2007.

The move by Riley Investment Management is aimed to block recovery attempts by Wells Fargo, according to the Associated Press. Wells Fargo has a suit pending against Country Coach, which it filed on Jan. 28 in U.S. District Court for the District of Oregon.

Wells Fargo Business Credit, a unit of Wells Fargo Bank, said in a Monday bankruptcy court filing that it holds “first-priority perfected security interest in substantially all of Country Coach’s … personal property assets.” Country Coach owes it at least $8.5 million, Wells Fargo said.

Country Coach, headquartered in Junction City, Ore., ceased operations and terminated its staff in December, according to Wells Fargo’s court filing.

Greenberg Traurig’s Kurzweil is being assisted in the matter by associate John Dyer, also in Atlanta. Muhlheim Boyd partner Wilson “Bo” Muhlheim in Eugene, Ore., is co-counsel to Wells Fargo. Kurzweil, Dyer and Muhlheim are advising Wells Fargo in both cases in bankruptcy and district court.

Stoel Rives and Hershner Hunter are counsel to Country Coach. Foster Pepper is advising Riley Investment Management.

Riley Investment Management of Los Angeles acquired Country Coach from National RV Holdings Inc. in Feb. 2007 for $52 million. National RV itself filed for Chapter 11 in Nov. 2007, after it sold off Country Coach. National RV later transferred its bankruptcy case to a liquidation proceeding.

Country Coach makes Allure, Inspire and Magna-brand recreational vehicles. A Country Coach-manufactured RV, the Magna Van Gogh 525, was priced at $299,900 on Tuesday on the Web site of RV retailer Camping World of Chattanooga.