Cold Carriers is shutting down despite Chapter 11 reorganization efforts

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Published by iTrucker at 05 Feb

Cold Carriers is shutting down despite Chapter 11 reorganization efforts

Story by: Clarissa Hawes at FreightWaves

 

Despite its efforts to reorganize, Cold Carriers Logistics and its entities will cease operations on Feb. 21 after failing to secure a new buyer, according to a source familiar with the bankruptcy case.

Private equity firm KJM Capital Transportation Fund LLC, which owns Cold Carriers Logistics and six other affiliates, filed for Chapter 11 bankruptcy protection in late September 2019, a move that impacted around 340 truck drivers.

The wind-down was agreed to by Cold Carriers and its major creditors at a recent hearing about the bankruptcy case “as they work to get equipment back to home base locations,” the source confirmed.

The decision to shutter operations was made after Cold Carriers owners failed to secure a buyer by Jan. 16, a deadline set by its major creditors.

One driver, who didn’t want to be named, told FreightWaves he was notified on Feb. 4 that his job was ending in a few weeks.

Cold Carriers’ bankruptcy attorney R. Scott Shuker stated in a Jan. 21 court hearing that it originally had three investors interested in buying the refrigerated company, but that none came through with  “either new money or a new financing deal” by Jan. 16, the deadline set by some of its major creditors.

Shuker said the wind-down would affect three operating trucking companies, including

Interide Transport, which had 106 employees, Sunco Trucking, which was the largest entity with 142 employees and 62 independent contractors, and Gantt Trucking, which had about 90 employees.

Read the original story and more HERE

Source and credits: freightwaves.com /Clarissa Hawes /  iTrucker  / Mario Pawlowski  

 

This is a developing story.

Read more articles by FreightWaves’ Clarissa Hawes

 

 

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