American LaFrance Financial Situation Worsens

[Guest]

Number of LaFrance workers won't return

By Katy Stech (Contact)

The Post and Courier

Saturday, January 12, 2008

An undetermined number of workers at American LaFrance will not return from a 30-day layoff next week because the firetruck manufacturer does not have the money to order parts and resume full production, a spokesman said Friday.

About 100 workers at the Summerville company were temporarily dismissed in mid-December. The company said at the time that it needed to update its inventory system after its relocation last year to a new $62 million manufacturing plant near Jedburg Road and U.S. Interstate 26.

The affected workers were supposed to return from the one-month furlough Monday.

But while the inventory upgrades are finished, officials began notifying workers earlier this week that they won't need to come back until mid-March.

"In the short term, we don't have components and parts to put together the trucks to actually build them," American LaFrance spokesman Michael Gordon said Friday.

Gordon said he didn't know how many employees would be affected by the move. The company had a total of 500 workers before last month's temporary layoff. Employees who are affected are getting medical benefits and also are eligible for unemployment assistance.

Gordon said the company is working to secure financing for the parts and components it needs to resume full production. He added that American LaFrance is in talks with its lender and that things "look positive."

"There were some hang-ups in being able to order the parts," he said. "It wasn't a vendor issue. It was an American LaFrance issue."

American LaFrance is owned by New York-based Patriarch Partners. A spokesman for Lynn Tilton, Patriarch's founder and chief executive officer, could not be reached for comment Friday.

The past 18 months or so have marked a turbulent period for American LaFrance.

In addition to glitches that cropped during its forced move from the DaimlerChrysler plant in North Charleston to its new manufacturing facility, the company had at least two rounds of layoffs in 2007.

Also, unhappy customers, such as the city of Bellingham, Wash., complained about the quality of the vehicles the company made.

The manufacturer then lost its CEO, John Stevenson, who resigned in October, the day before the company held the grand opening of its Summerville location. Meanwhile, Charleston County hit American LaFrance with a $317,313 bill in October to settle a dispute over tax-related fees that came due as a result of the company's move to Berkeley County.

[TL2L31 8]

Does anyone here have anything on order or about to be ordered?

[stephen morea 1]

Im sorry to any chrysler fans but, they really went down the tubes when they bought ALF.

[RescueKujo 130]

I know LAFD has some TDAs on order. There are currently (4) Trucks in the 2007/2008 budget on order from American La France. Delivery is estimated at the end of 2008..

[IzzyEng4 427]

Looks like ALF is falling into another comapny that got too big for their britches during an ownership change. Sad to see.

[PCFD ENG58 1,085]

Im sorry to any chrysler fans but, they really went down the tubes when they bought ALF.

ALF was sold A while back. Not owned by D/ CHRYSLER any more.

[Guest]

I'm up here in Western New York, anybody know what the status is of the R.D. Murray facility and if they are back to work there?

[FF402 133]

Locally, I know that Yonkers has two Tower Ladders on order, and White Plains has a ladder on order. I'm sure there's more around the region. I'm hoping this is just a bump in the road for ALF.

Edited January 14, 2008 by FF402

[TL2L31 8]

Locally, I know that Yonkers has two Tower Ladders on order, and White Plains has a ladder on order. I'm sure there's more around the region. I'm hoping this is just a bump in the road for ALF.

Wow, I wonder if there will now be a signifigant delay on these rigs.

[61MACKBR1 222]

Yonkers has "2" Tower Ladders on order with ALF? I knew that they were planning on replacing Tower Ladder 71 down at "The Big House" , with the current TL71 replacing the current Spare TL77 (Old Mack Baker 75), but I did not hear anything about replacing the current Tower Ladder 75 up at Station 12? Does anyone know anything more about this? I also read somewhere that Yonkers was also planning on replacing both the Foam Unit and Collapse Rig, with new units. Does anyone have an update on this as well?

[Oswegowind 17]

I only heard of 1 TL for Yks...and the Collapse rig may be something similar to the MSU, just set up for the duty of collapse equipment vehicle. Haven't seen any solid plans yet, other then the new FD Command Post Unit.

As for ALF, I feel awful for those poor souls who depend on that business being there to have a job. Many a town have become ghostly because plants have shut down and that was the only source of work/economy for the location. I hope they all get back to work soon!

Edited January 15, 2008 by Oswegowind

[Guest]

I sure hope that when the FDNY puts out the bid for 5 rescues later this year that ALF doesn't get the bid!

[IzzyEng4 427]

I sure hope that when the FDNY puts out the bid for 5 rescues later this year that ALF doesn't get the bid!

For some reason I don't think ALF would have bid anyway reguardless if they were not in financial trouble.

[Guest]

For some reason I don't think ALF would have bid anyway reguardless if they were not in financial trouble.

With some insider information I SERIOUSLY disagree with you on your above statement. I would be surprised if Pierce bid again though. I have a funny feeling that the R-1 Pierce is a one off rig for the FDNY, but it will be used as a model for the future 5 new rescue's that they bid. I can see this coming down to Seagrave and Ferrara with ALF lurking in the back ground.

[Goose 188]

With some insider information I SERIOUSLY disagree with you on your above statement. I would be surprised if Pierce bid again though. I have a funny feeling that the R-1 Pierce is a one off rig for the FDNY, but it will be used as a model for the future 5 new rescue's that they bid. I can see this coming down to Seagrave and Ferrara with ALF lurking in the back ground.

Rescue 1's Pierce not holding up well?

ALF seems to do well by Yonkers, as they see a lot of work and i haven't heard any complaints on here about them out of Yonkers...

[IzzyEng4 427]

With some insider information I SERIOUSLY disagree with you on your above statement. I would be surprised if Pierce bid again though. I have a funny feeling that the R-1 Pierce is a one off rig for the FDNY, but it will be used as a model for the future 5 new rescue's that they bid. I can see this coming down to Seagrave and Ferrara with ALF lurking in the back ground.

Really??? That surprises me. I though maybe it would only be between Ferrara and Seagrave. Would be intersting to see though. thanks for the updated info.

[mfc2257 464]

This problem is not one that is uncommon to corporations in the USA. There is a short list of "big" apparatus manufacturers in the USA so this type of issue gets big press amongst those in our industry.

What ALF needs is rock solid management to steer them throught this. I would be surprised if ALF couldn't establish a credit facility with a financial institution to secure the funds needed to move forward.

If for some reason ALF's credit is so shot that they can't secure financing (which would be a surprise since they were able to secure the needed funds to build the new manufacturing property) one option that they should look at is the possibility of a "sale/lease back" agreement with a financial institution to purchase the new facility that they just bought. Essentially, the bank buys the property and they become the landlord to ALF. ALF in turn gets an influx of cash (the value of the property and any equity in the building after debt settlement) which they can use to begin securing the items needed to begin production again. A clause for a buy-back option for the property can be written into the agreement so that after a predetermined amount of time they can repurchase their property at a "not to exceed" cost.

[ddoyle195 8]

I'm up here in Western New York, anybody know what the status is of the R.D. Murray facility and if they are back to work there?

American La France Hamburg "Furloughed" 20 employees last friday. They are due to come back mid February. However all plants are working with bare bones crews and nothing has moved out the door, meaning their first quarter looks pretty sad if you've put nothing out the door. Also ALF will not be at Fire Rescue East in Jacksonville later this month. They pulled out their inside display and will not be there at all. Very Interesting!!!

[bob803 1]

Yonkers has "2" Tower Ladders on order with ALF? I knew that they were planning on replacing Tower Ladder 71 down at "The Big House" , with the current TL71 replacing the current Spare TL77 (Old Mack Baker 75), but I did not hear anything about replacing the current Tower Ladder 75 up at Station 12? Does anyone know anything more about this? I also read somewhere that Yonkers was also planning on replacing both the Foam Unit and Collapse Rig, with new units. Does anyone have an update on this as well?

This was a post in the apparatus forum by X635 do not know how to redirect so here is the info from the post

From my awesome source (many of us on here thank you!):

City Of Yonkers Fire-Rescue upcoming apparatus delivery schedule for the next 6 months:

2 - 75' Mid mount American LaFrance Tower Ladders

2 - American LaFrance Pumpers

1 - Mack Granite model 713 tandem axle tractor w/ sliding fifth wheel

to be used for the 5000 gallon water tanker, the Fireblast trailer

1 - Live Burn trailer from Fire Blast = Fire Fighter Training by Fireblast 451 : Safety First

1 - Mobile command Post by MBF - on a freightliner M2 chassis

And maybe a few other suprises................

[TL2L31 8]

Are the ALF 's still being worked on or are they just sitting there partialy assembled?

[ddoyle195 8]

A little of both. The stuff that needs to get done they are waiting on parts to finish, or chassis's to finish them up. And there are others that are patially complete sitting and waiting because they either need parts and or chassis's.

[TL2L31 8]

A little of both. The stuff that needs to get done they are waiting on parts to finish, or chassis's to finish them up. And there are others that are patially complete sitting and waiting because they either need parts and or chassis's.

I feel sorry for those departments, hopefully thet have an escape clause

[ddoyle195 8]

I think anything in production is pretty much stuck unless it's a truck that was purchased via a grant. However anything that is not been started can pullout. Customers that have trucks in production can exercise penalty clauses for late deliveries.

[Reliance 29]

I think anything in production is pretty much stuck unless it's a truck that was purchased via a grant. However anything that is not been started can pullout. Customers that have trucks in production can exercise penalty clauses for late deliveries.

I see they lost another dealer. DPC Emergency Equipment of Delaware and Maryland has switched to Rosenbauer.

[Guest voeltz 234]

Hawthorne has a ladder and a utility/rescue on order from ALF. wounder whats going to happen??

[Reliance 29]

Hawthorne has a ladder and a utility/rescue on order from ALF. wounder whats going to happen??

American LaFrance files for bankruptcy protection

By John McDermott

Monday, January 28, 2008

American LaFrance, the troubled Summerville-based fire truck

manufacturer, sought to keep its bill collectors at bay by filing for

bankruptcy protection Monday.

Calls to the company were not immediately returned.

In documents filed with the U.S. Bankruptcy Court in Delaware,

American LaFrance said its assets and debts were between $100 million

and $500 million. It did not elaborate.

The company filed under "Chapter 11" of the bankruptcy code, which

typically is used by businesses that need to buy time to reorganize

their finances and secure new capital. In many cases, Chapter 11

filers continue to operate.

American LaFrance will likely submit a reorganization plan that would

have to be approved by the court. That plan would spell out how it

will repay all or a portion of its debts. The company said in its

filing that it expects some funds will be available to repay

unsecured creditors.

The largest creditor listed in the filing is ACE USA and ACE Bond

Services, which are owed a combined $44.5 million. Other large

creditors include American LaFrance's owner, New York-based

investment firm Patriarch Partners, and trucking giant Freightliner,

which sold the business to Patriach about two years ago. Various

employees are owed $1.4 million for accrued vacation.

About 100 of the estimated 500 workers at American LaFrance's

Summerville plant were temporarily dismissed in mid-December. The

company said at the time that it needed to update its inventory

system after its relocation last year from North Charleston to a new

$62 million manufacturing plant near Jedburg Road and U.S. Interstate

26. This month the company notified an undisclosed number of those

workers that they would not be recalled until mid-March because

American LaFrance did not have the money to order parts and resume

full production.

This was posted on www.firepics.net

[Reliance 29]

This was posted on www.firepics.net

http://www.charleston.net/news/2008/jan/28...tcy_protection/ This is the link to the Charleston Post & Courier with more news to follow tomorrow.

[61MACKBR1 222]

I would now assume that Yonkers will not be getting their 2 New Tower Ladders (71 & 75) and Engines (308 & 309) anytime soon (if ever). Wonder if YFD has a contingency plan in place, to which they can find ALF in default of contract and re-award the contract to the next lowest bidder (whoever that was, maybe Smeal). Curious to see what Yonkers now has in mind to take a different course of action, to avoid any unnecessary additional delays?

[Guest voeltz 234]

sometime this morning we got our new utility/rescue truck from ALF. I guess we just have to wait to see whats going on with our ladder now

[Guest]

sometime this morning we got our new utility/rescue truck from ALF. I guess we just have to wait to see whats going on with our ladder now

nice, get some pics up!