SUMMERVILLE, S.C., Jan. 29 /PRNewswire/ -- American LaFrance, LLC (the "Company" or "ALF") announced yesterday 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. "After the filing, media reports were written with many inaccuracies and we want to make sure the story was fully understood," said Lynn Tilton, CEO of Patriarch Partners, the manager of the fund that purchased American LaFrance in 2005. 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. Ms. Tilton further stated, "Weeks of pre-petition planning were devoted to preparation in order to facilitate a fast-track reorganization of this great American company." American LaFrance is planning to file a Plan of Reorganization ("Plan") with the requisite disclosure statement within the next few days. The Plan is aimed at a rapid reorganization and the emergence from bankruptcy within 60 days. The bankruptcy code allows the Company latitude to deal with issues and to find solutions to problems that are otherwise not available to the debtor in an out of court restructuring. The Plan will be comprehensive and will address problems that have continued to hinder the business by closing unprofitable locations, rejecting leases, rejecting un-profitable contracts, dealing with complex litigation on an expedited basis, raising financing on an expedited basis. A Section 363 sale is planned in the event that the Plan is not approved; however, the future of the business will be supported under both scenarios as the current lending group plans to serve as a stalking horse bidder and will credit bid its loans, if necessary. "The purpose of the filing is to insure the future of American LaFrance, its employees, its heritage and its great products," Ms. Tilton noted. The Company is filing a Plan and anticipates that the creditors will support the Plan. If the creditors support the Plan, the equity does not have to forfeit its ownership if the creditors are not paid in full. About American LaFrance, 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.
For Further Information Contact:
William K. Snyder
Chief Restructuring Officer
CRG Partners Group, LLC
843-486-7502
Media Contact:
Gregory Tiberend
Richard Lewis Communications, Inc.
917-406-1880
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