News: American LaFrance filed for bankruptcy

Monday, January 28, 2008

News: American LaFrance filed for bankruptcy

Fire Engine Maker Files for Chapter 11

CHARLESTON, S.C. — Fire engine maker American LaFrance on Monday filed for Chapter 11 bankruptcy protection, citing inventory problems and a depressed market for emergency equipment.

In a filing submitted to U.S. Bankruptcy Court in Delaware, the South Carolina-based company said it had problems changing from a unit of Freightliner, which ran the company from 1995 through the end of 2005, to its new owners.

Freightliner provided accounting, inventory and payroll services to American LaFrance through June, the court documents said. When American LaFrance went to a new system, there were inventory and customer data problems.

The company was also unab le to finish many vehicles on order, according to documents filed in bankruptcy court. The documents also cited new emission standards that the company said will require vehicle design changes.

The company, which employs about 1,000 workers in six states, has more than 1,000 creditors and more than $100 million in liabilities. American LaFrance's Chapter 11 filing protects it from creditors' lawsuits while it reorganizes its finances.

A company spokesman did not immediately return a telephone message seeking comment Monday.

Source: Chron.com

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Monday, January 28, 2008