SlowYaRole
01-29-2008, 08:02 AM
Business Wire - Press Release
American LaFrance Files for Bankruptcy, Intends to Reorganize in 60 Days
01.28.08, 2:39 PM ET
American LaFrance LLC (the "Company" or "ALF") announced today that it has filed a voluntary petition for relief under Chapter 11 of the U.S. bankruptcy code in the United States Bankruptcy Court for the District of Delaware. The Company announced that it will request approval of $50 million in debtor-in-possession financing from its pre-bankruptcy lenders. The Company will continue to operate its manufacturing facilities and provide repair services as a debtor-in-possession. The Company has retained William K. Snyder, a Managing Partner with CRG Partners Group, LLC, as Chief Restructuring Officer.
The Company will shortly file a Plan of Reorganization along with a motion for sale under Section 363 of the bankruptcy code in case the Plan of Reorganization is not approved. It is anticipated that the reorganization process will be completed in less than 90 days, at which time the Company will emerge from bankruptcy with ample liquidity for ongoing operations and a more viable debt structure. The Company will file today motions to honor customer warranties and employee wages, among other relief. The Company intends to honor its obligations to supply vehicles that are supported by performance bonds.
ALF's Chapter 11 filing is the result of several factors, including significant operational difficulties encountered upon the separation of ALF's business from the business of ALF's former parent, Freightliner LLC. To address these operational problems and to fund general operating expenses, ALF has incurred approximately $150 million in secured debt since the business was purchased from Freightliner LLC.
American LaFrance LLC, through its predecessor entities, is one of the oldest fire, rescue, and EMS vehicle manufacturers in the United States, dating back to the its founding in 1832. The Company operates 8 manufacturing/servicing facilities and two company-owned vehicle dealerships.
American LaFrance Files for Bankruptcy, Intends to Reorganize in 60 Days
01.28.08, 2:39 PM ET
American LaFrance LLC (the "Company" or "ALF") announced today that it has filed a voluntary petition for relief under Chapter 11 of the U.S. bankruptcy code in the United States Bankruptcy Court for the District of Delaware. The Company announced that it will request approval of $50 million in debtor-in-possession financing from its pre-bankruptcy lenders. The Company will continue to operate its manufacturing facilities and provide repair services as a debtor-in-possession. The Company has retained William K. Snyder, a Managing Partner with CRG Partners Group, LLC, as Chief Restructuring Officer.
The Company will shortly file a Plan of Reorganization along with a motion for sale under Section 363 of the bankruptcy code in case the Plan of Reorganization is not approved. It is anticipated that the reorganization process will be completed in less than 90 days, at which time the Company will emerge from bankruptcy with ample liquidity for ongoing operations and a more viable debt structure. The Company will file today motions to honor customer warranties and employee wages, among other relief. The Company intends to honor its obligations to supply vehicles that are supported by performance bonds.
ALF's Chapter 11 filing is the result of several factors, including significant operational difficulties encountered upon the separation of ALF's business from the business of ALF's former parent, Freightliner LLC. To address these operational problems and to fund general operating expenses, ALF has incurred approximately $150 million in secured debt since the business was purchased from Freightliner LLC.
American LaFrance LLC, through its predecessor entities, is one of the oldest fire, rescue, and EMS vehicle manufacturers in the United States, dating back to the its founding in 1832. The Company operates 8 manufacturing/servicing facilities and two company-owned vehicle dealerships.