Motive Power & Equipment Solutions filed for Chapter 7 Bankruptcy after D&SNG filed a petition for arbitration against them

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Freightwaves.com
Motive Power & Equipment Solutions, doing business as MP&ES, headquartered in Greenville, South Carolina, filed its petition in the U.S. Bankruptcy Court for the District of South Carolina on Tuesday.

According to court documents, the company said it was forced to close because of “cash flow issues” after one of its major customers “defaulted on a project payment” of over $2.5 million.

Just days before MP&ES filed its bankruptcy petition, one of its customers, Durango & Silverton Narrow Gauge Railroad Inc., headquartered in Durango, Colorado, filed a petition for arbitration against the company. It claimed MP&ES failed to meet established deadlines to produce and deliver components for two diesel locomotives costing the passenger railroad over $3 million.