Larry Salci
Consulting Services
Thursday, April 25, 2024
Colorado Railcar Manufacturing, LLC
President & CEO

I was retained by Hilco Financial Corporation (Chicago), the primary secured financial lender to Colorado Railcar Mfg. (CRM) as a management consultant to perform a financial and operational assessment of CRM for Hilco in February 2008; which I completed in early April. CRM was in default on payment of its multi-million dollar loans. In April 2008 Hilco appointed me President & CEO under the authority of their loan covenant default provisions; they controlled all voting stock. CRM was a designer and manufacturer of diesel powered multiple unit (DMU) passenger railcars and coaches. CRM had contracts with Tri-Met (Portland), Florida DOT, and the Alaska Railroad Corporation for the delivery of both single level and double deck DMUs and coaches and all contracts were behind schedule and over budget. CRM was in a financial crisis due to a major liquidity problem that strained relations with parts suppliers, customers, and its lender, Hilco. As CEO I renegotiated new contract provisions and cost sharing between the secured creditor, Hilco, the three customers, and major parts suppliers to ensure delivery of components to complete production and other contract requirements. Under my leadership, the management team successfully completed the engineering design and manufacture of vehicles under contract by December 2008. CRM ceased business operations in December 2008. In early 2009, the secured creditors sold the CRM assets in liquidation of their claims against CRM.

"It was a real pleasure to work for Larry because he is a very logical thinker, is grounded in reality, shares his thoughts with his team and seeks their input. He respects good people and thereby gets their loyalty and performance. It was a very difficult time at Colorado Railcar during the financial crisis and Larry kept the ship steady."
-Robert Stout, Sr. Vice President, Colorado Railcar Manufacturing

Colorado Railcar Manufacturing, LLC