GEOLOGISTICS COMPLETES FINANCIAL RESTRUCTURING
GeoLogistics Corp., the Santa Ana, Calif.-based non-asset based logistics provider, said it has completed a financial restructuring of some senior notes to reduce outstanding debt, lower interest expense and improve its financial flexibility.
Under terms of the debt exchange, all senior note claims have been exchanged for new equity securities while existing stockholders have purchased $24 million of additional security equities. The transactions reduced total indebtedness, including accrued interest, by about $140 million, the company said.
The restructuring was part of GeoLogistics plan to grow its logistics business. Over the last year, the company has brought on new management, divested underperforming assets and divisions, reduced staff levels, consolidated corporate functions and introduced new strategies to service clients, in a goal to strengthen and build its operating businesses.
“'The actions we have taken have already begun to yield positive results,” said Robert Arovas, chief executive officer. “Revenues, on a comparative basis, reached $1.5 billion in 2000, up $60 million from the previous year, while we achieved a $22-million operating income improvement, driven by strong regional performances in the Americas, Asia and Europe.”
Investment entities managed by Oaktree Capital Management LLC and William E. Simon and Sons LLC will continue to own a majority of the company's voting stock.