Guest post by FreightWaves’ John Kingston
Jack Cooper Ventures says it will be “business as usual” as the auto hauler undertakes a restructuring.
As the Teamsters signaled earlier Tuesday in a note to its members, Jack Cooper did file for Chapter 11 protection on August 6 under the federal bankruptcy code in the Northern District of Georgia.
In a prepared statement, the company said it would implement a “comprehensive, court-supervised restructuring” aimed at reducing its debt by more than $300 million. The statement affirmed earlier Teamsters statements that almost 2,000 jobs would be preserved.
“During the restructuring process, the Company will remain focused on successfully serving its customers and should emerge in an expeditious manner as a stronger business,” the company said.
The restructuring calls for the company’s largest lenders to cancel their debts in exchange for purchasing “all or substantially all of (Jack Cooper’s) assets.” But a spokeswoman for Jack Cooper said the company that will be acquiring the assets is New York-based Solus Alternative Asset Management,which she described as “a long-time supportive lender.”
The lenders will also supply debtor-in-possession financing to keep the company afloat. (Debtor-in-possession lenders are generally the first to get repaid in a bankruptcy proceeding.)
“The…new financing, combined with cash generated by the business, will support ongoing operations, fund payment of employee salaries, wages and health benefits in the ordinary course, and ensure that suppliers are paid as usual for goods and services provided during the process,” the statement said.
The lenders – soon to be owners – are also expected to invest “significant funds” into Jack Cooper, including capital that would help the company meet its goal of replacing 80 percent of its existing fleet with new equipment over the next five years. The Teamsters’ statement had described the investment in new equipment as a requirement that at least $20 million per year would be invested in a new fleet, enough to purchase 100 vehicles per year through 2023.
The existing company management will stay in place during the bankruptcy proceedings, the statement said.
Although new guidance on mask wearing returns the industry to some semblance of normalcy after over a year of lockdowns and restrictions, employers should remain cautious in revising policies.
While Texans are accustomed to living life free of excessive state-level taxes, they were in for a shock when their own U.S. Senator, Republican John Cornyn, used his national platform to advocate for the establishment of a truck-only vehicle miles traveled tax.
As we discuss ways to improve the sales relationship between carrier and shipper, the term “commodity” always comes up. Most carriers feel being a commodity diminishes the services they provide. It doesn’t have to be that way.
Three-part workshop series to focus on effective leadership communication strategies to motivate and retain your essential workers.
The nation’s top trucking research group plans to update previous studies on the effects of legalized marijuana and other drugs on truck safety along with integrating 18- to 20-year-old drivers into the industry.
Throughout the entire 90-year history of trucking in the United States, excessive detention has been a scourge on the industry. An upcoming 90-minute immersive workshop will share tools and strategies to combat this issue and keep the wheels moving and profitable.
While a request for Supreme Court review of the Ninth Circuit Court of Appeals decision to overturn an injunction banning enforcement of California’s AB5 will almost certainly follow, at this time, motor carriers who operate in California must be prepared to act in accordance with AB5.
The word “safety” is everywhere in the trucking industry. It is talked about nearly every day in the press, Congress has zeroed in on it, and most carriers will say that it is their top priority. With all this attention, it’s easy to believe that safety has become cliché. But it’s not.
A day after Colonial Pipeline said there was light at the end of the tunnel for the line’s closure due to a cyberattack, the impact of the shutdown on the ground is being felt.
Truck drivers and fleets have two months to prepare for the Commercial Vehicle Safety Alliance’s (CVSA) annual Operation Safe Driver Week, which is set for July 11-17. Here is what inspectors will be looking for.
