Consolidated Freightways Corp. (CF) has terminated a letter of intent to sell substantially all of the assets owned and used by Canadian Freightways, its Canadian subsidiary.

CF had announced last month that it would sell the subsidiary to CF Canada Acquisition Ltd., a group comprised of current Canadian Freightways senior management and a financial partner.

CF CEO John Brincko said the company is evaluating other potential investment opportunities for its Canadian operations, in conjunction with the Canadian Freightways management team.

Canadian Freightways is financially and operationally independent from CF and is not part of CF's U.S. bankruptcy proceedings.