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I'm surprised none have mentioned this yet so I might as well.

     Late Friday night, July 1, an inspector accidentally discovered a cracked equalizer bar on a Silverliner V truck. Further inspections found similar cracks on 90-95% of the 120 cars in the class. The entire class, which comprises a third of SEPTA's fleet, is now out of service and SEPTA is running the system on an "Enhanced" Saturday schedule. The situation looks like it is going to last at least until the end of the summer.

Regards,

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Dominic Mazoch posted:

Are these trucks on the Denver RTD cars?

     The RTD and SEPTA cars were both manufactured by Hyundai-Rotem (As were the MBTA cars I believe). However, the trucks on the SEPTA cars were made by subcontractor Columbus Steel Castings in Columbus, Ohio. I do not know if the RTD and MBTA trucks are of the same origin or not.

Attached is a picture of the damaged component.IMG_0788

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Last edited by spwills

Not good:

 


(May 16, 2016) - Constellation Enterprises LLC Implements Debt Restructuring

PRESS RELEASE

CONSTELLATION ENTERPRISES LLC AND ITS SUBSIDIARIES IMPLEMENT DEBT RESTRUCTURING; FACILITATED VIA VOLUNTARY CHAPTER 11 FILING

OPERATIONS TO CONTINUE AT COMMERCIAL METAL FORMING, JORGENSEN FORGE CORPORATION, AND ZERO MANUFACTURING

Youngstown, OH – May 16, 2016 – Constellation Enterprises LLC (“Constellation”), the parent holding company of four industrial subsidiaries – Commercial Metal Forming (“Commercial”), Jorgensen Forge Corporation (“Jorgensen”), Columbus Castings (“Columbus”), and Zero Manufacturing (“Zero”) (collectively, the “Subsidiaries”) – today announced that it has filed voluntary petitions for Chapter 11 of the U.S. Bankruptcy Code in order to restructure its debt obligations. The Subsidiaries, which are guarantors and borrowers of the debt held by Constellation, are included in the filing and will continue to operate uninterrupted, with the exception of Columbus Castings which will temporarily halt production during this process as it pursues a sale of the business.

The Group has suffered from significant operational issues at Columbus as well as the effects of weakness in the Oil & Gas and Industrial Manufacturing sectors across the Subsidiaries. These issues stressed the Group’s liquidity and challenged a balance sheet already burdened with high leverage.

This proceeding will enable Constellation to implement a financial restructuring that will bring its debt in line with current market conditions. During this period, Commercial, Jorgensen and Zero will continue to operate, uninterrupted, with no change in employment, in the normal ordinary course. Customers can expect to receive products and services as before, and vendors and suppliers will be paid for products and services received post the filing date in the ordinary course.

“The pursuit of this process is a positive step that is in the best interests of Constellation and its Subsidiaries, employees, customers, suppliers and other constituents,” said Donald MacKenzie, Constellation Enterprises’ Chief Restructuring Officer. “The businesses will emerge with a healthier balance sheet and be in a stronger position to meet the needs of their customers.”

William Lowry, Chief Financial Officer of Constellation, added: “We greatly value the ongoing loyalty and support of our employees. Their dedication and hard work are vital to the future of the Constellation. I would also like to acknowledge the importance of the continuing support of our customers, suppliers and business partners during this process.”

Constellation expects to move through this restructuring process very quickly. To provide liquidity for Commercial, Jorgensen, and Zero to operate as normal during this time, a group including the holders (“Noteholders”) of Constellation’s Senior Secured Notes have committed to providing Debtor-in-Possession financing to the Group. In addition, the Noteholders have also provided a bid to purchase substantially all of the assets of Commercial, Jorgensen, and Zero under Section 363 of the U.S. Bankruptcy Code. This acquisition will allow these businesses to emerge from this process with substantially less debt and position them for long-term success. Constellation has also received a letter of intent from an interested party for the acquisition of the assets of Columbus Castings under Section 363 of the U.S. Bankruptcy Code.

The Noteholders’ proposal would be subject to certain conditions, including execution and delivery of a mutually satisfactory definitive asset purchase agreement as well as bankruptcy court approval. Constellation will also solicit competing bids from other potential purchasers and conduct a sales process approved by the bankruptcy court.

Donald S. MacKenzie, of Conway MacKenzie, Inc, is serving as the Company’s Chief Restructuring Officer and Kramer Levin Naftalis & Frankel LLP and Richards, Layton & Finger P.A. are serving as legal advisors.

Additional information, including court filings and other documents related to the restructuring, can be found by visiting http://dm.epiq11.com/COE.

Company Descriptions

Commercial Metal Forming is a leading manufacturer of tank head and tank head accessories, focused on providing highest quality standards and unparalleled Customer Service on on-time delivery, lead-time, quote responsiveness.

Jorgensen Forge Corporation manufactures highly engineered, specialty alloy, open die forgings from high value titanium, aluminum, and steel alloy materials.

Zero Manufacturing manufactures deep-drawn and fabricated aluminum cases, molded plastic cases, enclosures, and assemblies.

For further information, please contact:

Jennifer E. Mercer
Epiq Strategic Communications for Constellation Enterprises LLC
310-712-6215
jmercer@epiqsystems.com


(May 16, 2016) - Columbus Castings Receives Letter of Intent to Effectuate Sale

PRESS RELEASE

COLUMBUS CASTINGS RECEIVES LETTER OF INTENT TO EFFECTUATE SALE; Transaction to be Facilitated Via Previously Announced Chapter 11 Filing

Columbus, OH – May 16, 2016 – Columbus Castings (“Columbus” or the “Company”), a premier North American supplier of large, complex, steel castings for the rail and industrial sectors, today announced that it has received a letter of intent from a third party for the acquisition of its assets under Section 363 of the U.S. Bankruptcy Code. The contemplated transaction would be subject to certain conditions, including execution and delivery of a mutually satisfactory definitive asset purchase agreement as well as bankruptcy court approval. As previously reported, Constellation Enterprises LLC (“Constellation”), the parent holding company of Columbus, had recently filed voluntary petitions for Chapter 11 of the U.S. Bankruptcy Code in order to restructure its debt obligations. Constellation’s subsidiaries, including Columbus, which are guarantors and borrowers of the debt held by Constellation, are included in the filing.

Columbus Castings has temporarily halted production during this restructuring process while it pursues a sale of the business. If consummated, the buyer intends to preserve Columbus’ continuing ability to service its customer base as well as infuse significant capital into the Company. A successful sale will allow Columbus to emerge from this process with substantially less debt and the much needed fresh investment capital.

“Columbus is determined to continue to support its customers. We continue to ship from inventory, having shipped much of our products to meet customer needs prior to our temporary production hiatus.” said Gary Bernhardy, Interim Chief Executive Officer of Columbus Castings. “We firmly believe that a successful sale process will allow the Company to emerge stronger and healthier, and better positioned once again to provide high quality products and services that our customers and industry expect from us.”

To facilitate completing the sale and restarting halted operations, Columbus Castings maintains an active and visible 24/7 presence for maintenance and security activities. Columbus will seek to move through the restructuring and sale processes quickly so that a new buyer may reengage the operations and provide necessary capital investments. While no assurances can be given that a sale transaction will be consummated, upon a sale of the Company many employees who have been placed on temporary layoff status in recent weeks will be expected to be recalled for work.

Additional information on the restructuring, including court filings and other documents related to the restructuring, can be found by visiting http://dm.epiq11.com/COE.

Company Description

Columbus Castings manufactures large steel castings for the freight rail, passenger rail, and heavy-duty industrial end markets.

For further information, please contact:

Jennifer E. Mercer
Epiq Strategic Communications for Constellation Enterprises LLC
310-712-6215
jmercer@epiqsystems.com


(May 23, 2014) - Columbus Castings has learned how to survive and thrive in challenging market

The metal casting industry has been one of the hardest hit by competition from China and India, but some companies have been able to survive and even prosper despite the combined onslaught of intense offshore competition and the Great Recession. That has now put them in the position to benefit from reshorint trend.

read more

 


(November  15, 2013) - Columbus Castings to add 50 jobs after landing Amtrak supplier order

Columbus Castings has landed the largest order in its 130-year history. A deal with Nippon Sharyo USA Inc. for railcar undercarriages could be worth up to $70 million to the manufacturer and will add more than 50 jobs at the South Side Columbus steel foundry.

read more

 

Tommy posted:

Original plans were to use drop forged supports by Canton steel. Instead they made the decion to use low-bid castings from Columbus, a troubled company now in bankruptcy. This was an engineering decision made by septa and may limit contractual liability. Forgings  that are drop forged are far superior.

     While drop forging would have been better, I've read things that seem to indicate that the Columbus products, as specified, were sufficient for the application. They shouldn't have failed, so the blame falls to the contractor that failed to use up to spec steel.

Mike W. posted:

Previous generations of the MU train-sets lasted for decades.  Why is quality such an issue these days?

This is nothing new.  The NYC subway's R-46 class cars, delivered between 1975 and 1978, had problems with cracked trucks.  They used a new de0isgn lightweight that proved to be inadequate.

Stuart

 

Mike W. posted:

Previous generations of the MU train-sets lasted for decades.  Why is quality such an issue these days?

The same reason that the quality of many automobiles produced after the 2008 model year took a dip.   Less long-established companies with experienced in-house engineering staffs and more reliance on on-and-off contract suppliers.  

When the economy, either domestic or global, sags, the companies lay off or go under and the search for another supplier or manufacturer begins.

Couple that to a perennially broke public transit agency and the recipe is a disaster.

The R44's were a complete disastor. The used 50 miles of teflon insuated wiring that melted.  They had 20 percent fewer doors and a mean time to failure of under 10,000 miles. The city had sold the old cars to a scrap dealer and had to rent them back at an astronomical cost while the R44's were rebuilt.

I think rules considering you have to take the low bidder for government projects has to change.  This is coming back to bite many government agencies!!  There should be a "bonus" for using proved products "off the shelf"!

Government Policy:  If it works, get rid of it.  Prime example are the Saturn S1B and SV rockets.  They worked.  And we don't need to use Russian stuff to get to the ISS which uses stuff which came from the Saturn era!

Last edited by Dominic Mazoch

All I'll say is that transit agencies are not railroads, and , within them, there are many who have transit experience (mostly bus or trolley) and end up in positions where they are responsible for making decisions about railroad equipment.  Hiring is often politically or socially motivated, and the Human resource people are public agency professionals, which is vastly different from being private enterprise hiring professionals.

So this kind of thing is the result.  No change in sight.

Number 90 posted:

All I'll say is that transit agencies are not railroads, and , within them, there are many who have transit experience (mostly bus or trolley) and end up in positions where they are responsible for making decisions about railroad equipment.  Hiring is often politically or socially motivated, and the Human resource people are public agency professionals, which is vastly different from being private enterprise hiring professionals.

So this kind of thing is the result.  No change in sight.

Maybe the TA's should, or MUST,  "create" a railroad division within the organization, run apart form the "pure transit" side.  More people to hire, but maybe they can focus on items one has to run on "freight roads"!

spwills posted:
Dominic Mazoch posted:

Are these trucks on the Denver RTD cars?

     The RTD and SEPTA cars were both manufactured by Hyundai-Rotem (As were the MBTA cars I believe). However, the trucks on the SEPTA cars were made by subcontractor Columbus Steel Castings in Columbus, Ohio. I do not know if the RTD and MBTA trucks are of the same origin or not.

Attached is a picture of the damaged component.IMG_0788

The current problem with these cars is limited to the trucks?

Would the original order for these cars have specified a minimum percentage of American-made parts as a condition of the contract?

How many other transit agencies use similar or compatible equipment that could be interchanged, if spare cars were available?

Last edited by Ace
Mike W. posted:

Is Septa broke or just non-profit like the State supported Highways and roads?

Both. 

SEPTA has no dedicated funding source.  There is often talk of adding tolls to I-80 which runs about a hundred miles north of Philly/Pittsburgh and using the proceeds to fund mass transit in Philadelphia/Pittsburgh.   FederalCourts have so far refused this, saying that I-80 is a Federal-aid highway and cannot be tolled.   Interestingly, there are no plans to add tolls to I-95 or I-476 which run through the city of Philadelphia to pay for SEPTA.

I would suspect that since the cars are publically funded that they have some percentage requirements for domestically or  locally sourced materials or labor. 

There were some roads that were toll BEFORE the Interstate Highway system came into being.  An example is the "Penna Pike", I-76/276 in the Keystone State.  Or the Kansas TurnpikeThe tolls on these were "grandfathered".

The GW Bridge between NY and NJ on I-95 is toll.  Most of I-44 in OK is toll.

Another guess is that you could add tolls to all or part of a road, provided it is used on the road itself.  This has to be the case of IH-10 in Houston where it was rebuilt with 10 miles of HOT lanes.

Last edited by Dominic Mazoch
645 posted:
Ace posted:

The current problem with these cars is limited to the trucks?

How many other transit agencies use similar or compatible equipment that could be interchanged, if spare cars were available?

Denver RTD uses the same basic design for their new electrified rail line but they are not identical to SEPTA's cars as they are still operating in Denver. See below link for more details:

why-denvers-silverliner-v-cars-still-run-while-septa-pulled-phillys-off-the-tracks

Thanks for the link. Apparently the Silverliner V cars have a history of other problems:

http://billypenn.com/2016/07/0...tas-futuristic-cars/

A confusing item in this account:

When the first working models were introduced in 2010, the Silverliner V was touted as “the future of SEPTA.” ...

But problems began cropping up right away.

Experts noticed multiple “shoddy welds” at the car ends. Engines that were designed to be environmentally friendly sometimes had trouble starting up again after idling for more than 15 minutes.

"Engines" on electric MU cars?

Last edited by Ace
Rule292 posted:
Mike W. posted:

Is Septa broke or just non-profit like the State supported Highways and roads?

Both. 

SEPTA has no dedicated funding source.  There is often talk of adding tolls to I-80 which runs about a hundred miles north of Philly/Pittsburgh and using the proceeds to fund mass transit in Philadelphia/Pittsburgh.   FederalCourts have so far refused this, saying that I-80 is a Federal-aid highway and cannot be tolled.   Interestingly, there are no plans to add tolls to I-95 or I-476 which run through the city of Philadelphia to pay for SEPTA.

I would suspect that since the cars are publically funded that they have some percentage requirements for domestically or  locally sourced materials or labor. 

Just passed thru Chicago and all around it are Tollways, but thru Chicago they are free then return to Tollways...

Pennsylvania already has EZ Pass on the Turnpike and other states have it, too.  You don't understand the politics of  the situation. I-80 runs  through some of the least developed  and economically depressed parts of the state and the people in that are use it as a commuter road.  Tolling that road to sink more money  for Philly and Pittsburgh to waste on their transit systems won't fly-and shouldn't. 

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