American LaFrance Announces Reorganization Plans

SUMMERVILLE, SC -- American LaFrance announced a major re-organization of its business. The re-organization includes the creation of a new Fire Business Unit headed by Jim Eshleman, newly promoted to Vice President. Under Eshleman, American LaFrance fire truck production will be consolidated in the company's existing plants in Ephrata, Pennsylvania and Hamburg, New York. In addition to several pending new vocational business ventures, vocational trucks will continue to be produced for existing customers in the company's Summerville, South Carolina facility.

On April 30, American LaFrance announced that its Chapter 11 plan of re-organization had been approved by a bankruptcy court judge with the support of almost 90% of its creditors. The company obtained an extension of $40 million of new credit in connection with its exit from bankruptcy.

The company also announced today permanent and temporary reductions of employment in all its facilities to secure its imminent exit from Chapter 11.

American LaFrance, LLC, is a leading manufacturer of fire, rescue and vocational vehicles. Through its predecessor entities, the Company is one of the oldest fire apparatus manufacturers in the United States, dating back to its founding in 1832. The Company operates four manufacturing facilities with over 200 dealership locations throughout North America.