Saturday, November 21, 2009

American LaFrance Seeks Chapter 11

Published Tuesday, January 29, 2008

American LaFrance said it has filed a voluntary petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company will request approval of $50 million in debtor-in-possession financing from its pre-bankruptcy lenders. American LaFrance said it had significant operational difficulties after separating from its former parent company Freightliner. To address these operational problems and to fund general operating expenses, American LaFrance has incurred approximately $150 million in secured debt since the business was purchased from Freightliner. American LaFrance said its problems have resulted in slowed production, large unfilled backlog and insufficient ...

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