Saturday, July 2, 2011

What Does RSA Suit Bode?/How Stands National Alabama?

Tonya Denson is an employee of the Alabama Department of Industrial Relations. Venius Turner is a nursing instructor at Jefferson State Junior College. Together they have sued the Retirement System of Alabama and its CEO David Bronner. The suit also names Gov. Robert Bentley and State Superintendent of Education Joe Morton as well as several other state officials.

Representing the plaintiffs is the law firm of Prichard, McCall, & Jones. Billy Prichard claims that, while the RSA has not performed well over the past ten years, the years of 2007, 2008, and 2009 were particularly dismal for the RSA. Specifically Prichard mentions RSA investments in Raycom Media and National Alabama--the Barton based rail car manufacturer.

Also specifically mentioned is a five hundred million dollar loan to the Canadian company National Steel Car, the former parent company to National Alabama. The suit claims the loan is fast approaching default. In the words of the suit:

Defendant Bronner has further admitted that the returns generated by the TRS and ERS have trailed national returns in part because of investments in TV stations, newspapers and a rail car plant in Alabama. RSA made a $500 million dollar loan to a Canadian owner to build rail cars. This loan was practically in default ab initio and the property sits empty.

The entire lawsuit may be read here: RSA Lawsuit

If we read this suit correctly, it does not take into account that RSA purchased the facility from its parent company in August 2010. Perhaps the main question now is how long this suit will be drawn out in the courts of Alabama.


And just how are things at our beloved National Alabama? From an extremely reliable source:

Apparently all is not well at National Alabama Corporation. Prior to the resignation of Dave Soldo, National Alabama Corporation had a small manufacturing contract with a local RV manufacturer. It has been learned that this contract 'ended' with Mr. Soldo's departure. It has also been learned that several members of National Alabama's management team are quietly looking for new careers elsewhere.