The Social Network & Community JUST for Firefighters
Anyone know the fate of ALF?
See Below:
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.
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.
Replies to This Discussion
-
Permalink Reply by Erik on
-
And here I was thinking service on our 2003 ALF Quint wasn't hard enough to get as it is... *sigh*. I don't care what people say, IMO if you're gonna get apparatus get a Pierce. They do tend to cost more, but you don't have to worry about this type of thing happening.
-
Permalink Reply by Keith Badler on
-
American LaFrance, Fire-Truck Maker, Seeks Bankruptcy (Update2)
By Dawn McCarty and Michael Bathon
Jan. 28 (Bloomberg) -- American LaFrance LLC, the fire- engine maker acquired by Patriarch Partners LLC in December 2005, sought bankruptcy protection after two years of losses.
The company, based in Summerville, South Carolina, listed debt and assets of between $100 million and $500 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The move to a new factory this year slowed production, and the switch to a new accounting and inventory system hampered vehicle deliveries, American LaFrance said.
The system, adopted in June, had ``serious deficiencies that had a crippling impact on operations,'' American LaFrance said in the papers. The company said it had net losses of $56 million in 2007 and $48 million in 2006 as demand also slumped for fire trucks, ambulances and other emergency vehicles.
Patriarch, a closely held New York-based investment firm, acquired the company from the Freightliner unit of the former DaimlerChrysler AG for an undisclosed price. American LaFrance, which has operated since 1832, in October opened a new 57,000- square-foot headquarters and 440,000-square-foot manufacturing plant in Summerville.
American LaFrance said it now doesn't have enough cash to keep operating. The company adopted the new accounting and inventory system after Freightliner stopped providing those services under a transition agreement.
90-Day Exit
``Absent reformulation of certain pre-existing business strategies and reconfiguration of ALF's debt structure, it appears that net losses will continue for the immediate future,'' William K. Snyder, managing partner of CRG Partners Group LLC, said in an affidavit filed today. CRG is American LaFrance's proposed financial adviser.
American LaFrance expects to exit bankruptcy in less than 90 days, according to a statement. A motion for sale will be filed in case the court rejects its reorganization plan, American LaFrance said. The company will seek $50 million from current lenders to keep operating in bankruptcy.
Company officials couldn't immediately be reached for comment.
American LaFrance said it will extend a furlough of as many as 100 workers, which started in December and was expected to end Jan. 14, through the end of February to complete an inventory.
Patriarch, owed $150 million, is the largest secured creditor. The 20 largest unsecured creditors are owed $61 million. The three biggest are ACE-USA, owed $18.2 million; Freightliner LLC, owed $10.6 million; and Patriarch Partners Agency Services, owed $4 million. American LaFrance said it owes $7.1 million for warranty claims.
The case is In re American LaFrance LLC, 08-10178, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net .
Last Updated: January 28, 2008 16:34 EST
-
Permalink Reply by Tom Kilmartin on
-
American LaFrance Emerges from Bankruptcy
(5/23/2008)
AMERICAN LAFRANCE CONFIRMS PLAN OF REORGANIZATION
LOOKS FORWARD TO EMERGENCE FROM BANKRUPTCY
SUMMERVILLE, SC May 23, 2008 – American LaFrance, LLC (the “Company” or “ALF”) announced today that Judge Brendan L. Shannon entered the Order confirming ALF’s Chapter 11 Plan of Reorganization (“Plan”) allowing the Company to emerge from bankruptcy. The Company has been in bankruptcy for fewer than 17 weeks and is emerging with almost 90% of its creditors supporting its Plan.
Lynn Tilton, CEO of Patriarch Partners, stated “This is just another milestone in the long history of this epic 175 year old manufacturing company. With many of its legacy difficulties now in its past , this great American legacy is prepared to move forward continuing its build of the best known truck brands in the industry. By having obtained an extension of $40 million of new credit in connection with its exit from bankruptcy, ALF is in a strong financial position to well service its customers.”
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 its founding in 1832. The Company operates 8 manufacturing/servicing facilities and two company-owned vehicle dealerships.
=====================
Creditors Voted In Favor Of Company's Reorganization Plan
(4/30/2008)
CREDITORS BACK AMERICAN LAFRANCE PLAN OF REORGANIZATION
COURT CONFIRMATION HEARING SET FOR MAY 22, 2008
SUMMERVILLE, SC April 30, 2008 – American LaFrance, LLC, a leading manufacturer of fire truck and vocational vehicles, announced today that creditors voted overwhelmingly in favor of the Company’s Plan of Reorganization (“the Plan”).
Over 86% of the General Unsecured creditors, Class 4, voted in favor of the Plan. In addition, 100% of the Convenience class, Class 5, approved the plan as did all of the Secured Lenders, Class 1. Paving the way for the Company’s rapid emergence from bankruptcy, the bankruptcy court will review the votes and final plan at the Confirmation Hearing scheduled for May 22, 2008.
“Based on broad and deep creditor support, we are optimistic that the Court will approve the plan,” said William Snyder, Chief Restructuring Officer of American LaFrance, LLC. “The Official Committee of Unsecured Creditors for the Plan played a primary role in rallying support for the Plan among creditors across all classes,” added Mr. Snyder.
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 its founding in 1832
=============================================
Company Production Update
April 17th, 2008
As we ramp up production, I want to take this opportunity to update you on the increasingly positive trends occurring at American LaFrance.
March 31st marked the end of the furlough and employees were called back into action, the majority of whom chose to return to work, clearly speaking to both the loyalty and commitment of our workforce to American LaFrance’s continuing success. With renewed confidence and purpose, we began to implement Lean Manufacturing principles in all areas of production, an impact immediately evident in our ability to predict cycle times accurately and, in turn, driving a reliable and sustainable production schedule.
We’ve shipped over 20 finished trucks since we’ve cranked up production. As we capitalize on lean principles, we will see a corresponding increase in our run rate which will be validated as we deliver to our published schedule.
Our faithful vendors are working closely with our supply chain team to return to a “normal course of business” as we prove that the Company is well funded and intent on maintaining our historic legacy. The vast majority of our suppliers have remained incredibly supportive of us and we’ve realized our relationship with them is a genuine partnership. Our MRP (Materials Requirement Planning) system continues to be refined but we’re very pleased with its accuracy and ability to forecast demand, which are essential components in supporting production and reducing costs.
At the Parts Distribution Center (PDC), American LaFrance has streamlined the order entry system and completed its integration into our MRP system, allowing supply chain visibility to materials as we create and maintain our inventory levels for fast moving parts as well as fulfilling unique items. In the last 30 days we have substantially increased our same day order fulfillment rate, a marked improvement but still short of our ultimate goal. We’re striving to meet Urgent orders on the same day received, to fill Emergency orders within 24 hours and standard orders within 36 hours of receipt for all in-stock parts. We recognize that aftermarket parts are critical to our dealers and customers and as a company we have made supplying them in a timely manner a top priority. We intend to set up remote distributions like our Los Angeles facility to expedite shipments on the west coast and nationwide.
As we wrap up our legal proceedings, we turn our focus to the future, both near and long term. We’re ready to repair our relationships with our suppliers, dealers, and most importantly, our customers, by delivering on our promises and exceeding expectations. Shortly, we will be able to announce exciting new products and enhancements to our current line that will truly set American LaFrance apart from the competition. Our heritage is that of the industry leader and we are preparing to reclaim our legacy.
We still face challenges but we’ve already proven ourselves by beating seemingly insurmountable odds. We will confront issues head on and be nimble in our responses. The days of bureaucracy and waste are behind us and the future looks bright. Once again, I would like to extend my sincerest gratitude to each of you for your steadfast trust and loyalty.
Sincerely,
Bill Hinz
Chairman American LaFrance
-
Permalink Reply by Engineco913 on
-
The old management for Alf moved on to become the management for KME didn't they?
© 2024 Created by Firefighter Nation WebChief.
Powered by
