WILMINGTON, N.C. — Vertex Railcar Corp., which at one time represented the first entry of Chinese manufacturer CRRC into the U.S. freight car market, faces an involuntary bankruptcy petition over debts of more than $45 million.
WilmingtonBiz.com reports that CRRC Yangtze Co. Ltd., owner of 22% of Vertex, claims nearly all of the $45.4 million in debt listed in the petition filed in U.S. Bankruptcy Court in Delaware. Two other Chinese companies, Wuhan Kemai Machinery Manufacturing Co. Ltd., and Wuhan Flying Free Logistics Co. Ltd., list debts of $92,561 and $373,273, respectively.
The involuntary Chapter 7 petition generally is a device for liquidation to pay off debts.
Vertex announced in 2014 it would enter the freight-car business at a former crane manufacturing plant, creating 1,300 jobs [see “Vertex Rail to assemble tank cars in North Carolina,” Trains News Wire, Nov. 13, 2014], although the WilmingtonBiz report says the company never employed more than 200. It eventually closed in 2018.
CRRC’s move to become part owner of the company drew calls for a congressional investigation in 2016 [see “Congressmen seek investigation into Chinese ownership of railcar builder,” Trains News Wire, July 19, 2016]. CRRC and Majestic, a Hong Kong-based private equity firm which took a 45% stake in the company, were eventually cleared to complete the deal following a review by the Committee on Foreign Investment in the United States.
NC At least that is where the byline states.
WHICH Wilmington is involved? Delaware or North Carolina?