Concrete Pumper C&C Files for Reorganization in Orlando

C&C Pumping Services Inc., a provider of concrete-pumping services from Groveland, Florida, filed a Chapter 11 petition on Dec. 7 in Orlando, listing assets of $7.1 million against debt totaling $10.2 million.

The company has 61 concrete pumps in the fleet, according to the Web site. Debt includes $8.6 million in secured obligations.

The case is In re C&S Pumping Services Inc., 09-18703, U.S. Bankruptcy Court, Middle District of Florida (Orlando).

http://news.businessweek.com/article.asp?documentKey=1376-KUE0FG07SXKW-6

I did not post this to bash C&C but it is the news. We all need to be thinking are we next? Are we as an industry getting taken advantage of? I would say we are. We as an industry do not charge enough for our services. I do not wish any harm to C&C or any other pump company so please lets not trash anyone but I think talking about the issues at hand are important.

Todd, Todd, Todd, Todd, you just opened a big can of worms with this one.  You want to talk about price gouging and saying we need to charge more for our services, and that we are getting taken advantage of, but you don't want any bashing going on.  LMAO. 

anyone have the short version of the differance between chapter 7 vs chapter 11 ?

As far as price gouging going on, it starts at the top and works its way to the bottom. The top being the pump manufactures themselves.

C&C was/is an impressive company, the first time I met them I was shocked at the time to see 4 - 58/61 meter schwing pumps in there yard . As I never at that time seen more than 1 per yard due to cost, Hopefully they will be able to over come this bump in the road. There are some very fine men/women working there .

Best wishes C&C and good luck to you

I know Bull-Frog, I am in trouble now I am sure of it but I have hope. I hope we can talk about this issue with out bashing each other. We dont need to name people or companies. We all have heard the stories. I think we can talk about this for the betterment of the industry.

Chapter 7 all is liquidated, Chapter 11 things are reorganized and most or part is paid back over time.

A lot of companies start out in Chapter 11 but end up in Chapter 7.

Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the "absolute priority"). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.

For example, secured debt would be loans issued by banks or institutions based upon the value of a specific asset. Whatever assets and residual cash remain after all secured creditors are paid are pooled together to be paid to any outstanding creditors with unsecured loans: e.g. bondholders and preferred shareholders.

Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It's much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It's important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.

If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.

Well done Todd,it has everything to do with what's right and wrong.As a business person I can only say whatever the industry rates need a norm.

There are those out there thar can't or won't understand,I do.It has nothing to do with a concrete pump,dump truck,skidsteer,it's all the same.If one has a flawed business practice they are doomed,reguardless of the industry.The sad part is the employee pays the ultimate price.In this instant it was a matter of time.Thank goodness I got out while the equipment was still worth something.

I only hope the employees's fair out better,good luck.

thanks for "dumbing" down the chpter 7 vs chapter 11 Todd for me :)

Many times after a chapter 11 a company will come back stronger than ever because it now has less liabilities to worry about but if low pricing and no profit were the reason they had to file chapter 11 in the first place than there is not much hope of that company becoming successful. They will end up filing chapter 7. Many times a company will file chapter 11 and convert to chapter 7 in a few months.

c&c concrete service is a salty company and mis treat there operators i hope they get whats cominig i know todd  you dont want bad talking on here but they suck 

Does anyone know who they were banking with?

I think Todd done a good job, I hope they are in Chapter 11 cause we sure don't need anymore Auctions pump prices are at and all time low all the business owner big and small can get in the same way as C&C, less than 9 months ago Pumpco bit the dust wonder how many of there guys are still out of work.

c&c and pumpco were in bed together i guess they didnt learn from each other

To a degree putzman1975, I would agree with you.  I worked there long ago, didn't like it so I left.  I have nothing bad to say about Chris, he treated me fairly, sure he yelled alot at some of his employees, but if anybody had that much stress, they either become drunks or dopeheads.  He put his heart and soul into his business.

It will benefit my company a great deal if he is gone, however I hate to see a local guy who started with next to nothing lose his business. 

I am a die-hard Republican and I always root for the small business owner who took a chance.

Look at all the people he employed over the years.  Thats what our great country was founded on, and still the backbone of our great nation.

As much as it will benefit my company, it is sad that a small business owner loses everything he worked so hard for.

Good luck Chris, I know if this dont work out you are like a kitty-cat, you will land on your feet running.  Frank

I was in this business from 1966-1980.  It was possible to make money then, although it was a small amount - usually about 8% of sales.

I don't see how anbody can keep the doors open today with the prices being charged for the service.

Richard O'Brien said it best earlier this year - prices today are the same as they were in 1980.  I don't need to tell you about how the cost of everything has gone up since then.

There is way too much iron chasing way too few jobs.  The recession and the demise of commercial building has cut everyone off at the knees.

I don't see much that can be done.  There is a mentality among some of the pumping companies that they MUST keep the units working - no matter the pricing.

This is leading to a race to the bottom.  Unless the industry can develop the willpower to stick to sensible pricing, it is going to continue.

How do you get rid of all this excess iron?  Other than selling it overseas, the only way is to scrap it.  Try telling that to an owner-operator who has his life invested in a ten-year-old machine.

Sorry to be a pessimist, but I think everyone is in survival mode now, and not all are going to survive.

dead pumper

Very well said.