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| DesignLine is seeking $3 Million loan in order to fund NJ Transit order (282883) | |
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| (282896) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by RailBus63 on Thu Aug 29 09:56:21 2013, in response to DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Thu Aug 29 00:45:12 2013. The North Carolina-based company intends to use the funds to help it put together either a going-concern sale of the business or a liquidation as it tries to dig itself out of about $40 million in debtDoes the full article indicate that NJT will get its buses eitherway, or could DesignLine potentially close down without fulfilling the order? |
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| (282912) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by T8H5307N on Thu Aug 29 13:03:19 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by RailBus63 on Thu Aug 29 09:56:21 2013. >>The North Carolina-based company intends to use the funds to help it put together either a going-concern sale of the business or a liquidation....<<This sentence from above seems to answer that question. I think we're done. |
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| (282915) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by Gold_12th on Thu Aug 29 13:13:08 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by RailBus63 on Thu Aug 29 09:56:21 2013. You need to buy the article to see the full details. Regardless, DesignLine is desperate, it needs emergency funds in order to finish their unhappy customers orders. |
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| (282919) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by The Orion Kid on Thu Aug 29 14:07:53 2013, in response to DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Thu Aug 29 00:45:12 2013. This is HORSE SHIT!!!! I am a regular 139 rider that uses the bus at least once a week. I've been seeing a hell of a lot of curtailed runs in the AM rush lately, and now we got restroom buses from Fairview and down south that all end up SRO, more and more MCI CNGs are headed up to the Meadowlands storage/scrap lot (well over 20 there right now) and Howell is getting even more short by the day, and NJT is gonna sit around and wait for Designline to get back on their feet and continue production? Just to save a few? I don't think the idiots up in Penn Plaza understand that PEOPLE DRIVE out here, and they'll be more than happy to DRIVE to their jobs in the city if they keep this shit up with the buses! I had to wait 20 minutes this morning to get on a non-restroom/SRO bus when it should have been 5 minutes at the most! Just gonna keep getting worse too, but NJT obviously just doesn't give a damn if they're gonna keep being Designline's bitch, waiting and waiting for buses that NEVER GET BUILT!I'm sick of Transit being cheap at the expense of their paying customers (we pay $15 for a ONE WAY TICKET and over $320 for a monthly) and so are most of their customers around here. Plenty of people have ditched the bus, either switching to their cars, the train or Academy, and at this point I can't blame them. |
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| (282921) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by Edwards! on Thu Aug 29 14:44:53 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by The Orion Kid on Thu Aug 29 14:07:53 2013. i hear you..its a shame that they even went to them,after the issues the MTA and other companies had with them.should have stayed with MCI or went with Prevost Car |
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| (282922) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by RailBus63 on Thu Aug 29 15:55:26 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Thu Aug 29 13:13:08 2013. It's not clear from this brief summary that the money would even allow them to continue production - $3 million is not going to buy much material, engines, etc. to build the 60 to 70 coaches remaining in the order. The money could be needed just to prepare the company to be sold or to liquidate the company. The bankruptcy court isn't going to care about NJT's coach shortage if shutting down the company is the best deal for the other creditors. |
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| (282924) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by busdude2 on Thu Aug 29 16:11:17 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by RailBus63 on Thu Aug 29 15:55:26 2013. That sounds right. With only 12 buses in service and 64 left in the order 3 million is a drop in the bucket. |
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| (282976) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by mci guy on Fri Aug 30 12:10:42 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by busdude2 on Thu Aug 29 16:11:17 2013. 7201-7215 HAVE BEEN DELIVERED ACCORDING TO REPORTS. that would leave zbout 59 left. |
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| (282977) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by JAzumah on Fri Aug 30 12:24:28 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by busdude2 on Thu Aug 29 16:11:17 2013. Why does DesignLine KEEP having this problem? Someone is burning or stealing money. |
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| (282979) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by JAzumah on Fri Aug 30 12:30:45 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by The Orion Kid on Thu Aug 29 14:07:53 2013. Academy will be happy to pick up more 139 trips after Labor Day. |
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| (282981) | |
Re: DesignLine is seeking $3 Million loan to fund its sale or liquidation |
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Posted by Tony Clifton on Fri Aug 30 12:32:52 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Thu Aug 29 13:13:08 2013. The money is not to fund the NJ Transit order. The money is needed to fund the sale or liquidation of the company because they lost the funding to complete the NJ Transit order.--- Bankrupt Electric Transit Bus Co. Seeks $3M Ch. 11 Loan By Matt Chiappardi Law360, Wilmington (August 28, 2013, 5:20 PM ET) -- Electric and alternative fuel transit bus manufacturer DesignLine Corp., driven into bankruptcy after losing pledged funding connected to a major contract with New Jersey Transit, sought permission late Tuesday to obtain $3 million in post-petition financing from a group of funds managed by Cyrus Capital Partners LP. The North Carolina-based company intends to use the funds to help it put together either a going-concern sale of the business or a liquidation as it tries to dig itself out of about $40 million in debt, according to a bankruptcy declaration by Chief Restructuring Officer Katie Goodman filed in Delaware bankruptcy court. DesignLine, which listed $14.1 million in assets in its bankruptcy petition, has been limited by capital constraints for several years, and was forced to seek court protection after attempts fell through to get funding that would have financed operations to build 76 buses fueled by compressed natural gas for NJ Transit, according to the declaration. "The company has a substantial backlog of buses to be delivered under its contract with the state of New Jersey and is owed substantial amounts under the contract," the declaration states. "Through 2012 and 2013, however, the company has been operating on a budget that has been dependent on continued borrowing to sustain ongoing operations." Goodman said the company had entered into a letter of intent with an undisclosed potential backer to get the necessary money, but the investor unexpectedly pulled out on July 27, leading DesignLine to terminate nearly all of its approximately 250-employee workforce. The company petitioned for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on Aug. 15, but didn't file any substantial motions in the case until Tuesday when the declaration and request for debtor-in-possession financing were entered into the court record. By Wednesday, the bankruptcy case had already received some opposition when creditor Cameron Harris filed a motion to have the case moved out of Delaware and into North Carolina. Harris, who says he is DesignLine's third largest unsecured creditor, argues that the change of venue would be appropriate since the company's principle place of business, assets and 30 percent of its creditors are in North Carolina. The creditor's claim in the case stems from an agreement upon which he says DesignLine didn't perform, and Harris has been named to the official committee of unsecured creditors formed by the U.S. Trustee's Office on Tuesday. DesignLine was founded in the mid-1980s in New Zealand and built and sold mostly diesel-fueled buses until it started developing hybrid models in the 1990s, according to the declaration. In 2006, a group U.S. investors bought the firm, moved its headquarters and operations to North Carolina, and put together a growth strategy that catapulted annual revenues from about $5 million to $30 million, the declaration states. That strategy included developing hybrid and electric propulsion systems protected by a series of 14 patents and seven registered trademarks, and penetrating additional markets in the Middle East, Australia and the United States, according to court records. But DesignLine was dogged by losses of more than $20 million in 2010 and 2011, and has never been able to scale its operations enough to become profitable, according to Goodman. The company also hit several financial potholes including a failed reverse merger initial public offering that aimed to raise $50 million, and an exhausted $33 million credit facility as tried to meet the demands of the NJ Transit contract. Goodman listed DesignLine debts to include $8.7 million of outstanding first-lien senior secured debt and $19.5 million of outstanding second-lien senior secured debt. DesignLine also has more than $15 million in unsecured and trade liabilities, the declaration states. DesignLine is represented by Mark D. Collins of Richards Layton & Finger PA. Harris is represented by Robert J. Dehney, Gregory W. Werkheiser and Andrew R. Remming of Morris Nichols Arsht & Tunnell LLP. The case is In re: DesignLine Corp., case number 1:13-bk-12089, in the U.S. Bankruptcy Court for the District of Delaware. |
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| (282989) | |
Re: DesignLine is seeking $3 Million loan to fund its sale or liquidation |
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Posted by Gold_12th on Fri Aug 30 13:55:34 2013, in response to Re: DesignLine is seeking $3 Million loan to fund its sale or liquidation, posted by Tony Clifton on Fri Aug 30 12:32:52 2013. So, I was wrong. But my god, this company has never been making money when it was move to US. |
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| (282998) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by Gold_12th on Fri Aug 30 14:42:12 2013, in response to DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Thu Aug 29 00:45:12 2013. There are two bankruptcy case numbers in Delaware Bankruptcy Court...Case number: 13-12090-MFW Chapter: 11 Company Name: DesignLine USA, LLC Date Filed: 8/15/2013 Judge: Walrath Case number: 13-12089-MFW Chapter: 11 Company Name: DesignLine Corporation Date Filed: 8/15/2013 Judge: Walrath |
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| (282999) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by Gold_12th on Fri Aug 30 14:46:00 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by Gold_12th on Fri Aug 30 14:42:12 2013. DesignLine companies:aka DesignLine International Holdings, LLC aka DesignLine International Corporation aka DesignLine Corporation aka Jasper Merger Sub Inc. aka Jasper Ventures Inc. |
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| (283031) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by busdude2 on Sat Aug 31 08:51:02 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by mci guy on Fri Aug 30 12:10:42 2013. Well if it is 15 delivered then they are still 61 short. The order is for 76 buses. But I still have not seen anything over 7212. |
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| (283034) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by RailBus63 on Sat Aug 31 09:32:31 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by JAzumah on Fri Aug 30 12:24:28 2013. The problem could be a poor business model, IMO. They are trying to develop a new technology with the turbine engines, and on top of that they keep bidding on these orders for models that have no prior experience building (NJT CNG cruisers, Denver mall shuttle buses). It would have probably helped a great deal if they had focused on selling a basic 40-foot transit bus that could help generate revenues and given investors some hope for the company's future. |
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| (283041) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by mci guy on Sat Aug 31 09:50:58 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by busdude2 on Sat Aug 31 08:51:02 2013. as per nyctf they have been delivered. but dont expect any more. this co in deep shit. |
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| (283043) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by busdude2 on Sat Aug 31 10:19:58 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by mci guy on Sat Aug 31 09:50:58 2013. Yeah they are in deep. |
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| (283044) | |
Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order |
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Posted by JAzumah on Sat Aug 31 11:08:18 2013, in response to Re: DesignLine is seeking $3 Million loan in order to fund NJ Transit order, posted by RailBus63 on Sat Aug 31 09:32:31 2013. That is the thing. They should have had an EcoStripper model that could compete near Gillig's price point and forget the "technology". However, the technology seems to be generating all of the investor interest. The main asset they have is the NJT contract. That is the only thing that they can hinge their future on. They need a strategic investor that will force them to deliver the goods. |
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