The company has made a payment to become current on its outstanding Title XI bonds, received the balance of funds under a $3-million line of credit from an affiliate and has instituted various operational changes related to its mainland vessel service. Trailer Bridge said it continues to pursue a transaction involving a sale and leaseback of the office building and truck terminal that, if concluded, would provide meaningful additional liquidity.
Trailer Bridge also began implementing various operational changes that are expected to improve overall net results even without a highly anticipated change in Puerto Rico market conditions. Most of these changes relate to concentrating its mainland vessel operations in Jacksonville and discontinuing direct vessel service from Newark, NJ. The net effect of these actions, once fully implemented, is expected to result in approximately $2-million per quarter improvement in bottom-line results.
Trailer Bridge has also completed several trial shipments of automobiles using its new proprietary Vehicle Transport Module system in a combination truck/rail movement. Trailer Bridge has several patent applications pending before the U.S. Patent and Trademark Office directed to this system.