ALF in Chapter 11
Jan. 29, 2008
The announcement from American LaFrance yesterday that had filed for Chapter 11 bankruptcy protection appears to have surprised many.
By Carey Fredericks
The writing was clearly on the wall earlier this month, however, when 100 workers who were laid off temporarily were told they could not return to work because ALF didn’t have enough money to pay them.
ALF was bought in 2005 by New York-based private equity firm Patriarch Partners. These guys are pros at turning around troubled companies so it’s a good guess that the restructuring will be successful and a more efficient ALF will emerge.
Meantime, truck orders are a bit behind schedule but all warranties are being honoured.
You can read Reuters story with some good background here.
ALF has posted answers to questions on its website.