SUMMERVILLE, S.C., March 27 /PRNewswire/ -- American LaFrance, LLC (the "Company" or "ALF"), a leading manufacturer of fire truck and vocational vehicles, announced today that Judge Shannon has approved ALF's Disclosure Statement to accompany the Debtor's Plan of Reorganization ("Plan"). In addition, the Official Committee of Unsecured Creditors ("Committee") has committed to withdraw its opposition to the Plan and support a modified version the Debtor's Plan, anticipated to be filed by the end of this week. The court has set April 18, 2008 as the voting deadline and April 29, 2008 for confirmation of the Plan.
William K. Snyder, the CRO of the Company, stated: "With the support from the Committee, the Company is looking to quickly exit bankruptcy and ramp up production to meet customer needs; this development takes the focus off the bankruptcy for customers, suppliers and employees and allows the management team to on manufacture and deliver trucks to its municipal constituents around this country."
The Plan contemplates satisfaction in full of all senior secured debt, administrative claims, and priority claims. To address the $85 million of contingent and non-contingent general unsecured debt, the Plan provides for the assumption by the reorganized company of approximately $28 million of such claims and establishment of a fund of assets to pay the remaining claims. The remaining claims will be paid from a fund including $6.1 million of cash and proceeds from the sale of two buildings to pay a total dividend of 22.5% of respective claims. The reorganized Company is also funding litigation against certain parties related to the complications that resulted from operational issues that led, in large part, to the ALF bankruptcy. Unsecured creditors with balances $2,500 or below (or those willing to reduce the claim to $2,500) will be paid in full without interest.
Patriarch Chief Executive Officer Lynn Tilton added: "We are pleased to take a step forward towards ensuring the long term future of this 175 year old company. American La France embodies a great American heritage and it has long built the highest quality fire trucks and emergency vehicles, which contribute to saving lives in this country every single day."
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.