TransCom said the filing will enable it to continue to operate its businesses, using their own internally generated cash and the proceeds of debtors in possession financing being arranged with the company's bank group. TransCom’s Canadian subsidiary, Wes-T-Rans, and its Amparts operations in Mexico, are not included in the filings.
TransCom cited a prolonged industry slump, declining sales, acute liquidity problems and a heavy debt load as factors prompting the need to reorganize.
TransCom’s board of directors has hired the New York-based bankruptcy consulting firm Bridge Associates LLC. TransCom’s shares stopped trading on the New York Stock Exchange on April 12, after the company failed to comply with the exchange’s minimum continued listing requirements.
TransCom also announced that T. Michael Young has resigned as the company’s president and CEO. Young will remain a director and continue as chairman of TransCom.
