Grumman Olson to be acquired under Chapter 11

Grumman Olson Industries has begun to restructure and reorganize under a prepackaged Chapter 11 filing. The company is expected to emerge from bankruptcy protection in 60 days as a division of Specialized Vehicle Corporation, SVC. The filing enables Grumman Olson, one of the nation's leading manufacturers of custom-engineered truck bodies, to deal with the company's past-due obligations while simultaneously obtaining financing to fund current obligations and future growth. The company does not anticipate any interruptions in production.According to Jim McConnell, president and CEO of Grumman Olson Industries, the planned acquisition by SVC will create the second largest specialty body builder in the United States."The combined company's expanded product lines offer customers 'one stop shopping' for their specialized body needs, including aftermarket parts and support," McConnell said. "Additionally, we will leverage our distribution networks, complementary customer bases, and manufacturing locations to expand product reach, ultimately creating a more efficient organization."Grumman Olson has the support of its lending group; interim Debtor in Possession (DIP) financing will be secured to ensure adequate liquidity for Grumman Olson to meet all of its ongoing and future production needs. Interim financing also ensures that all chassis currently on ground at Grumman Olson's three manufacturing facilities will be completed, the Grumman Olson chassis bailment pools will be continued, orders will be fulfilled on a timely basis, parts and warranty support will continue, and dealership sales incentive payments will be honored.Grumman Olson operates manufacturing facilities in Sturgis, Michigan; Montgomery, Pennsylvania; and Tulare, California; and plans to continue operations at these locations. SVC operates production facilities in Kidron, Ohio; Lakeland, Florida; Washington, North Carolina; and Independence, Kansas. The combined product lines will include walk-in trucks, refrigerated and beverage bodies, dry freight vans, emergency service vehicles, shop vans, and parcel delivery vans.

TAGS: Truck Bodies
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