American LaFrance has announced a major reorganization of its business following the company’s filing of Chapter 11 bankruptcy in January.

The reorganization includes the formation of a fire business unit, to be headed by Jim Eshleman, who has been promoted to vice president. Under Eshleman, the company’s fire truck production will be consolidated in American LaFrance’s Ephrata, PA and Hamburg, NY plants.

According to the company, American LaFrance’s Chapter 11 reorganization plan was approved April 30 by a bankruptcy court judge with the support of almost 90% of its creditors, and the company obtained $40 million of new credit in connection with its exit from bankruptcy.

American LaFrance also announced both permanent and temporary reductions of employment as the company tries to secure an imminent exit from Chapter 11.

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