Home · Maps · About

Home > BusChat

[ Post a New Response | Return to the Index ]

(282204)

view threaded

Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Gold_12th on Fri Aug 16 14:21:55 2013

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Charlotte busmaker DesignLine Corp. — which has struggled with production delays and lawsuits since relocating its headquarters here from New Zealand in 2006 — filed Thursday for Chapter 11 bankruptcy protection, according to court documents.

The company halted work at its southwest Charlotte plant late last month. In a written statement at the time, it called the action temporary.

In the bankruptcy filing, the company listed assets of $14.06 million and debts of $37.5 million.

Its largest creditors listed in the filing include:
•$3.64 million to New Jersey Transit for payments on buses not delivered.

•$2.86 million to Eagle Services Limited, listed as a stockholder.

•$845,645 to Charlotte insurance executive and investor Cameron Harris, who is listed as a stockholder.

•$233,090 to Charlotte law firm Parker Poe Adams & Bernstein.

DesignLine’s board of directors approved the voluntary bankruptcy filing at a meeting Monday, according to the filing.

The company is being represented by Nelson Mullins Riley & Scarborough and Richards, Layton & Finger. GGG Partners was listed as the company’s financial adviser. GGG Partners Managing Partner Katie Goodman is named as chief restructuring officer in the petition.

The company is best known in Charlotte as the former employer of then-mayor Anthony Foxx, who is now the U.S. secretary of transportation. Charlotte Douglas International Airport also runs several of DesignLine's hybrid electric buses as shuttle transportation to CLT parking lots. In 2011, one of those buses caught fire.

The busmaker had started off 2013 with good news: Its compressed natural gas coach bus has passed all phases of the critical Altoona bus test. The Altoona Bus Research and Testing Center in Pennsylvania vets new-model vehicles for the Federal Transit Administration. Some transit agencies, including Charlotte’s, require the green light from Altoona before buying particular makes.

In the past, the Charlotte Area Transit System has bought hybrids buses from Gillig in San Francisco instead of vehicles from the hometown producer because DesignLine was unable to pass muster on Altoona trials.

In recent years, DesignLine wrestled with a string of canceled contracts and vendor lawsuits in the United States. Its operations in New Zealand, where the company was founded in 1985, faltered after unsecured creditors petitioned a court to liquidate the company.

DesignLine replaced its CEO last year. Former New York City Metropolitan Transportation Authority executive Joseph Smith replaced Brad Glosson, who had led a group of investors in purchasing DesignLine and relocating its headquarters to Charlotte. But problems continued to plague DesignLine. As recently as June, the busmaker made news when one of its buses “suffered an apparent brake malfunction and rolled down a steep hill,” according to ARLnow.com, an Arlington, Va., news site.

http://www.bizjournals.com/charlotte/news/2013/08/16/charlotte-hybrid-busmaker-designline.html

Post a New Response

(282207)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by RailBus63 on Fri Aug 16 14:39:02 2013, in response to Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Gold_12th on Fri Aug 16 14:21:55 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Chapter 11 bankruptcy means they will try to continue operating while restructuring and paying off creditors. With NJT being the biggest of the creditors, though, it will be interesting to see how they can make them happy without losing the contract.

Post a New Response

(282208)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Gold_12th on Fri Aug 16 14:45:09 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by RailBus63 on Fri Aug 16 14:39:02 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
I really doubt they will payed the creditors off, in recent reports they still have trouble to get a loan.

Post a New Response

(282209)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by AMoreira81 on Fri Aug 16 14:51:14 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by RailBus63 on Fri Aug 16 14:39:02 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
I have to wonder if NJT might be better off re-bidding the contract, since I doubt that the contract will be re-bid. Of course, would NJT want to get stuck with a handful of oddballs?

Post a New Response

(282210)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by bx36ltd on Fri Aug 16 14:59:12 2013, in response to Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Gold_12th on Fri Aug 16 14:21:55 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Jersey shoulda stuck with MCI

Post a New Response

(282211)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Gold_12th on Fri Aug 16 15:19:50 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by bx36ltd on Fri Aug 16 14:59:12 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
MCI didnt low bid it, now they have a chance.

Post a New Response

(282217)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by NorthShore on Fri Aug 16 17:10:02 2013, in response to Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Gold_12th on Fri Aug 16 14:21:55 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
What ever happened to the MTA's Designline buses?


Post a New Response

(282219)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Gold_12th on Fri Aug 16 17:12:28 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by NorthShore on Fri Aug 16 17:10:02 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
They were sent back to DesignLine, some of the ex-MTA buses uses as prototype or other customers snatch it up.

I assume DesignLine did pay back to MTA.

Post a New Response

(282223)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by busdude2 on Fri Aug 16 18:15:08 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by AMoreira81 on Fri Aug 16 14:51:14 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
NJT will never learn. The Millennium mess should have taught them something. Stick with a proven builder MCI. And the lowest bid should not apply because Designline did not have a proven bus.

Post a New Response

(282224)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Fri Aug 16 18:39:33 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by busdude2 on Fri Aug 16 18:15:08 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Compared to Sandy damage to their trains, this is pocket change.
MCI's are probably getting over-designed and pricey.


Post a New Response

(282228)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by AMoreira81 on Fri Aug 16 23:16:19 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Fri Aug 16 18:39:33 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
There is always Prevost.

Post a New Response

(282237)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Sat Aug 17 07:19:25 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by AMoreira81 on Fri Aug 16 23:16:19 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
True, but they do not often sell to scheduled carriers (for some reason)

Post a New Response

(282239)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by R160A A Train on Sat Aug 17 09:23:29 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by busdude2 on Fri Aug 16 18:15:08 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Ah now there's the rub. The Millennium mess was actually NJT's fault. It came to light about a year ago that the Millennium RTS buses were in fact fine but NJT didn't want to be the first big contract on a new bus builder, EVEN THOUGH Millennium was employed by ex-Nova employees and even some Ex-TMC employees who knew the RTS like the back of their hands.

Meanwhile all of the RTS built on the NJT contract have been in regular service since with next to little or no issues, in fact Texas A&M, Pueblo and Somerset County (Talk about having someone in your back yard slap you in the face with you own $#!t) had been knocking down MTS's doors for more units because they work so well. NJT had left such a bad taste in MTS's mouth that it never really recovered from that.

NJT much like the MTA has a history of being an extreme tough customer to deal, especially with NJT and all their ultra customizations of buses. In fact every bus since the 2001 Neoplan and MCI orders were HEAVILY customized. I'm amazed that DesignLine even decided to take on NJT, because there were several manufacturers who wouldn't even bid on a NJT RFP.

Now yeah DesignLine has had its share of hiccups, but the NJT order was poised to get them on track and I've heard that NJT has been less that pleasant to deal with on this order as well changing up and specs and what not. Typical NJT, I'm surprised NABI held on because there was loads of changes through out that contract. Hell NJT changed the whole damn bus including shrinking it to 38 and a half feet.

Post a New Response

(282240)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by NIMBYkiller on Sat Aug 17 09:27:08 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Sat Aug 17 07:19:25 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Plenty of sales to GLI, ADT, MTA, HJ, Concord Coach, and Orleans Express. All schedule operators

Post a New Response

(282241)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by R160A A Train on Sat Aug 17 09:32:54 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Fri Aug 16 18:39:33 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
MCIs OR any bus is as expensive as you make it. Your spec determines what your price will be on the final "bill"

Post a New Response

(282242)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by AMoreira81 on Sat Aug 17 11:04:25 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Sat Aug 17 07:19:25 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
That changed with the Prevost entering the NBQP with the 2400s and now winning a 300-bus MCI order as a pure low bidder.

Post a New Response

(282243)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Sat Aug 17 11:48:48 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by AMoreira81 on Sat Aug 17 11:04:25 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
I prefer Prevosts. They don't tip outward when going around a curve. It just seems a steadier ride than an MCI.

Post a New Response

(282244)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Sat Aug 17 11:52:22 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by R160A A Train on Sat Aug 17 09:23:29 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Jail time for NJT for a Nova/RTS order ?
Orion would no longer with NJT's corrupt political culture.

Somerset County got the 2 RTS demos from NJT & MTS, but seem to go after cheaper buses now (El Dorado ?).

Post a New Response

(282247)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by 167t on Sat Aug 17 12:41:43 2013, in response to Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Gold_12th on Fri Aug 16 14:21:55 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Not surprised at all.

Post a New Response

(282253)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by AMoreira81 on Sat Aug 17 14:21:17 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Sat Aug 17 11:48:48 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
The X3-45 also have a very long wheelbase---of 27 feet 11 inches, 18 inches longer than that of the D4500, and because the X3-45 is shorter in height (it is even shorter than an O7 CNG), a lower center of gravity.

Post a New Response

(282254)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by AMoreira81 on Sat Aug 17 14:23:41 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by R160A A Train on Sat Aug 17 09:23:29 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Also...those NABI 416s advertised as 40 feet---are actually 38.5 feet long. However, NJT is only paying $358K per bus - a pretty cheap price.

Post a New Response

(282259)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Sat Aug 17 15:42:12 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by AMoreira81 on Sat Aug 17 14:23:41 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Custom built, high floor, major components in "MCI locations" on bus.
Nobody else will ever buy one.

Post a New Response

(282264)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by Joe V on Sat Aug 17 17:29:55 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by NIMBYkiller on Sat Aug 17 09:27:08 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Notice nothing outside the Northeast.
ADT and GLI may feel they have to buy some since they run into Quebec.

Post a New Response

(282274)

view threaded

Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor

Posted by R160A A Train on Sun Aug 18 08:20:04 2013, in response to Re: Breaking News: DesignLine filed Chapter 11 BANKRUPTCY; NJ Transit i$ largest creditor, posted by Joe V on Sat Aug 17 11:52:22 2013.

edf40wrjww2msgDetailB:detailStr
fiogf49gjkf0d
Yeah, because Millennium is no longer in a position to provide buses. The management there is a total mess and can't get its head out its ass, so pretty much is just a parts company supporting the current Millenniums out there.

Post a New Response


[ Return to the Message Index ]