NEMF intends to use these proceedings to facilitate an orderly wind-down of its operations.

Discussion in 'Current Events' started by mripadmini, Feb 17, 2019.

  1. mripadmini macrumors regular

    mripadmini

    Joined:
    Aug 24, 2013
    #1
    Elizabeth, N.J., Feb. 11, 2019 /PRNewswire/ – New England Motor Freight, Inc. (the “Company” or “NEMF”) today announced that the Company and ten related entities have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark on February 11, 2019. NEMF intends to use these proceedings to facilitate an orderly wind-down of its operations.

    Vincent Colistra, a Senior Managing Director with Phoenix Management Services, Inc., and Chief Restructuring Officer for the Company, said, “We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant.

    Upon the recommendation of its advisors, the Company has determined that a Chapter 11 proceeding is the best mechanism to maximize the value of its assets for the benefit of its employees and various creditor constituencies.
    Phoenix Management Services is serving as the Company’s financial and restructuring advisor.

    About New England Motor Freight

    New England Motor Freight, Inc. provides less-than-truckload (LTL) carrier services in the United States and Canada. Founded in 1977, the company is based in Elizabeth, New Jersey, and has terminals in the Northeast and Mid-Atlantic.
     
  2. jtara macrumors 68000

    Joined:
    Mar 23, 2009
    #2
    I struggle to find any relevance here. And have never heard of the company. (Which might just be because I don't live in New England.)

    Do they haul truckloads of iPads? And will the iPads now be truckless?
     
  3. Gutwrench Contributor

    Gutwrench

    Joined:
    Jan 2, 2011
    #3
    I haven’t heard of them either, but intermodel services are widely used around NJ and in NE.

    So are they signaling the plan to restructure their debt under C11 then sell off its assets under a trustee? They don’t expect to emerge out of BK? I’ll google it. I’m confused, as usual.
     
  4. mripadmini thread starter macrumors regular

    mripadmini

    Joined:
    Aug 24, 2013
    #4
    they are closing up shop like Toys R Us.

    "In the filing, NEMF painted a picture of a company that had struggled in recent years, but whose fortunes took a dramatic downward turn in late 2018 due to the loss of several unidentified key accounts, a shortage of qualified drivers, a new labor contract that contained “onerous” retroactive terms, an aging fleet that was costly to maintain, and tough competition from non-union carriers.

    The final straws were the unwillingness of five NEMF lenders holding the company’s 13 letters of credit to renew or restructure the obligations on terms acceptable to NEMF and the related companies, and the corporation’s 2018 financial performance and 2019 outlook. The lenders’ decisions were based on the company’s ongoing losses and liquidity problems; efforts to consolidate the letters of credit also proved unsuccessful, NEMF said."

    https://www.freightwaves.com/news/ltl/industry-starts-to-right-itself-after-nemf-filing
     

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