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Wells Fargo Bank Questions Schwing’s Financial Viability

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Construction lender Wells Fargo & Co. has called into question the viability of concrete-pump supplier Schwing America Inc. in a recent bankruptcy filing. The brief, filed on Nov. 27 in U.S. Bankruptcy Court, District of Minnesota’s St. Paul Division, claims St. Paul-based Schwing booked net losses for the past three years on revenue that declined 34.8% in 2008 and is projected to fall another 65% this year, to $64 million. The North American subsidiary of Germany-based Schwing Group has received “artificial support” from its parent and “is not viable as a going concern,” the bank claims. The manufacturer filed for Chapter 11 on Sept. 28, claiming $130.5 million in assets and $90.9 million in liabilities. A Schwing official sent ENR an internal memo dated Sept. 28, assuring that all unsecured creditors “will be paid the full amounts of their claims.”

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