Comcar Industries, the parent company for five operating companies each offering national truck transportation and related services, has filed for Chapter 11 bankruptcy in order to sell its various operating companies.
As a result of separate agreements, CT Transportation, LLC will be sold to PS Logistics, LLC; CTL Transportation LLC will be sold to Service Transport, Inc.; and MCT Transportation LLC will be sold to White Willow Holdings. The company has also entered into a letter of intent for the sale of CCC and CTTS Repair.
“Our decision to file Chapter 11 was to better enable us to find homes for our customers, people and assets. Prior to this decision, we worked diligently to find a solution that would reduce our debt, enhance our liquidity and best position all Comcar holdings for the future. After evaluating options to address our capital structure and conducting extensive negotiations, we determined that a sale of all companies would be the best path forward to maximize their value,” according to the Comcar senior management team.
During the planned process, the company said it expects to conduct business as usual on a day-to-day basis. Procedural activities will be managed by Comcar and overseen by the bankruptcy court. This is known as the “363 sale process,” as it is governed by Section 363 of the U.S. Bankruptcy Code.
“We are proud that we have found excellent future owners as each division is being purchased and will be managed by strong and reputable operators upon their respective sales,” the management team continued. “Further, this process will allow our companies to continue operating in the ordinary course of business while the sales process for each one continues. We believe this will best maintain opportunities for our people, continue to serve our customers and maintain vendor relationships.”
