UPDATE 1-Monaco Coach says may have to shut down operations

* Cuts majority of workforce

* Says may be forced to shut down operations

* Shares halted at $0.41

March 2 (Reuters) - Troubled U.S. recreational-vehicle maker Monaco Coach Corp MNC.N eliminated most of its workforce, and said it may be forced to shut down if it failed to obtain additional financing.

Shares of the company were down 11 percent at 41 cents before trading was halted on the New York Stock Exchange.

The company, which competes with Winnebago Industries Inc (WGO.N), has been struggling to survive in the ravaged recreational motor-home industry and looking for additional financing for the past couple of quarters.

In January, the company said it was exploring strategic options, including joint ventures and mergers, and also exploring options for some of its businesses.

Most of the separated employees had already been on furlough since mid-December 2008, Monaco Coach said in a statement.

The company was not immediately available for comments.

In February, the company entered into a forbearance agreement with Bank of America and GE Commercial Distribution Finance with respect to certain repurchase obligations. The lenders agreed to withdraw some repurchase demands through April 6, 2009.

A rash of problems, including soaring fuel prices, a housing market slump and a weakening economy have ravaged motor-home makers over the past year as buyers keep away from showrooms.

Some recreational vehicle makers such as Country Coach LLC have already been forced into filing for bankruptcy protection. (Reporting by Amulya Nagaraj in Bangalore; Editing by Deepak Kannan)