Mack Trucks Must Borrow After Its Worst Loss Ever
- Share via
From the Allentown Morning Call
ALLENTOWN, Pa. — Hit by a record $87.5-million loss in the third quarter, Mack Trucks Inc. must borrow money from Renault and extend its bank loans “to continue as a going concern,” the company says.
Rather than filing for bankruptcy, Mack is seeking additional funds from the Renault Vehicules Industriels division of the French auto maker, which owns 45% of Mack’s stock, as well as renegotiating credit agreements with its banks.
The third-quarter loss reported Tuesday was the worst in Mack’s history, as was the loss for the first three quarters. The company was in the red $105.9 million for the nine months, contrasted with a profit of $17.9 million for the same period of last year.
