American LaFrance appointed A. Matthew Karmel as president and CEO. With Karmel’s arrival, Bill Hinz was named chairman of American LaFrance. Karmel will report to Hinz. Karmel joins the American LaFrance as the company transitions to a permanent leadership team. Karmel will be making additions to his staff to complete his team over the next few months.

Karmel has more than 25 years of manufacturing experience in a variety of industries including heavy engines at Detroit Diesel Corp. His body of work includes several successful turnaround companies, both domestic and international. His most recent position was that of president Asia-Pacific, MAG Industrial Automation Systems.

“Matthew brings a wealth of experience to American LaFrance at a time when the company is poised to emerge from its legal proceedings," Hinz said. "By having Matthew in place there will be a seamless transition of leadership. I will remain actively engaged with American LaFrance focusing on the strategic elements of the business while Matthew will immediately engage the tactical.”

Those legal proceedings are petitions for bankruptcy protection that the company filed early this year. In late February the United States Bankruptcy Court for the District of Delaware granted two motions critical to ALF's exit from Chapter 11 and set a timetable for such exit.

The court granted final approval of ALF's debtor-in-possession financing, which authorizes ALF to borrow $42 million from its pre-petition lenders. This financing will ensure that ALF has adequate liquidity to purchase parts during the bankruptcy proceeding and re-establish production volume to pre-bankruptcy levels, including bringing employees back from furlough.

The court also approved bid procedures for the sale of the company in the event that ALF's plan of reorganization is not confirmed. The court established April 9 and April 18 for hearings on plan confirmation and scheduled an April 28 hearing to consider the motion seeking authority to sell all of ALF's assets in the event ALF's plan of reorganization is not confirmed.