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The Car and Truck Fleet and Leasing Management Magazine

CleanFUEL USA Files for Bankruptcy

April 06, 2016

Photo courtesy of CleanFUEL USA.
Photo courtesy of CleanFUEL USA.

CleanFUEL USA, a manufacturer of alternative fuel equipment for propane autogas, announced that it has filed for Chapter 11 bankruptcy to seek the restructure of its debts.

CleanFuel USA also expects to obtain debtor-in-possession (DIP) financing for an orderly reorganization. Subject to court approval, the DIP financing, along with the company’s cash from operations, is expected to provide sufficient liquidity to allow continued operations during the Chapter 11 process.

“We are taking this action so we can continue to strengthen and adapt our business to meet the changing dynamics in the alternative fuel industry,” said Curtis Donaldson, the founder and president of CleanFUEL USA. “We intend to use the Chapter 11 process to reorganize our financial and operational structure, and position the company for the future.”

During the restructuring process, the company plans to operate its business as usual, fulfilling customer orders, paying vendors, and offering the same services.

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  1. 1. Joseph M. Nonnemaker [ April 08, 2016 @ 03:19PM ]

    I'm not throwing rocks, but I am just wondering about upper management compensation, is this another Solendra ? I under stand the need to grow new markets and the cost of infrastructure but this seems to me to be the same all over again.

  2. 2. Jeff Johnson [ April 12, 2016 @ 10:14AM ]

    This is not unexpected for CleanFuel, their business model just isn't sustainable. It is easy to follow their failed and cancelled projects. You need to make a project work not just expect it to flourish on it's own and then drop it when it magically doesn't work. Many people have been negatively affected by the lack of insight and planning. I hope creditors take a long hard look at this before getting strung along for yet another round. Many small business have been bought up only to be closed in the wake of the bigger scheme that obviously doesn't work. The losers are the investors and the consumers as the management always seems to survive to go at it again. Someone with some actual experience in this industry needs to be at the helm with realistic goals and not just a pile of window dressing to make a company look big and successful. Anyone can throw money around buying up companies and making a mega corporation, few can make it more than a shell game.

  3. 3. Howard Smyth [ April 12, 2016 @ 10:25AM ]

    About time they restructured to "clean" up their fuel messes. There is a trail of abandoned fuel facilities that simply are not being kept up to working condition. Cleanfuel ties up valuable real estate with broken down stations and refuses to repair them. The loser is the consumer that relies on these stations to power their converted vehicles, however Cleanfuel doesn't seem to care and wonders why revenue drops at non-working stations, Homer Simpson captions it best.
    Time to step aside Cleanfuel and let someone else show you how it is done. Chapter 11 is not an accolade it is a sign of failure.

  4. 4. Samual Jones [ April 12, 2016 @ 12:15PM ]

    Thank you for bringing this to my attention along with the helpful feedback.
    I was ready to drop 6 figures on a large fleet conversion, however will plan to spend the money with someone else. Re-structuring is one thing, when you need chapter 11 ( voluntary or not ) you are in trouble period. I am going to consider a much smaller stable company that keeps operations at a realistic level.

  5. 5. Mark Maxim [ April 13, 2016 @ 01:28AM ]

    I am in the same situation preparing to convert a large fleet with a refueling solution for an investment of over $ 850,000. This expenditure will either be delayed or will be made with another company. I would be interested in knowing what others are planning to do or what solutions they have found. I don't really want to wait for a restructure as I won't invest during a bankruptcy. The trouble is that these large companies are the first to run into trouble when the industry shifts. Long term smaller companies tend to weather storms much better as they can move with industry changes better and have less baggage.

  6. 6. Bill Gaines [ April 14, 2016 @ 01:44PM ]

    I think CleanFUEL USA should sue CARB for having to file for bankruptcy! As we all know propane is readily available in all regions of the US, including the rural and frontier regions. The carbon footprint is significantly less than gasoline; the engine will last up to 50% longer thanks to this low carbon fuel; and there is virtually no cost to altering current propane stations to fill Autogas vehicles.

    CARB’s ridiculous certification processes have literally killed the Autogas market here in California, and in other green states as well. Government’s needless regulation has again squelched a viable industry that would help pave the way to even better alternative fuel technologies. It makes no sense to me what so ever!

  7. 7. Ron Mexico [ May 15, 2016 @ 02:01PM ]

    Just a train wreck.....worst company to work for....total cluster....run like hell.

 

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