Mounting claims from creditors that could total nearly $3 million, has forced American IronHorse to file Chapter 11 in the U.S. Bankruptcy court the week of March 24, 2008.
The company held a conference call with its dealers to give them a brief description of its plans for reorganization and news about a potential buyer. CEO and president Buck Hendrickson is confident a group of investors, will help the company with its reorganization efforts, some of whom could be current management investing their own money in the company. This announcement comes just nearly three weeks after a trio of investors filed a petition in U.S. Bankruptcy court to force the OEM into involuntary bankruptcy for failing to pay debts that could total $2 million, four more creditors have since joined the case, including custom wheel manufacturer R.C. Components who claims that American IronHorse owes $327,414.39 for parts already received, and another $284,842.14 for finished products and raw material that AIH had ordered.
IronHorse has between 80 and 100 dealers. Hendrickson said. “We are going to find the money, and we’re going to get it turned around.”
Some dealers have had relative success with IronHorse, while others have been frustrated by the company’s lack of support.