Canadian Freightways Sale to TransForce is Completed.Business Editors VANCOUVER, Wash.--(BUSINESS WIRE)--Jan. 28, 2004 Consolidated Freightways Consolidated Freight was the 3rd biggest trucking company in the US. In the 1930s they started their own truck manufacturing operation, Freightliner, now part of DaimlerChrysler. Corporation (CF) announced that it has completed the sale of substantially all of the assets of Canadian Freightways Limited and its subsidiaries (CFL CFL Canadian Football League ) to TransForce Income Fund for $140 million (Canadian) or approximately $108.2 million (U.S.), including the assumption of substantially all of CFL's liabilities. The cash value of the sale net of the liabilities is $69.6 million (Canadian) or approximately $54.4 million (U.S.) The parties signed the initial deal on August 25, 2003 and have been obtaining the requisite government and contractual approvals during the interim period. TransForce operates leading transportation and logistics companies in Canada and intends to operate CFL as an independent division, retaining current management and staff. John Brincko, CF's chief executive officer said: "We are very pleased with the overall value realized for our Canadian assets. Achieving maximum value and ensuring that CFL continue operations as one of Canada's premier transportation companies have been our goals. Since signing the initial agreement we have become even more convinced that, with TransForce's backing, CFL's future is secure and that its customers will continue to receive the high level of transportation services for which CFL is known." "I also want to thank Chanin Partners our investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. , whose efforts were led by Eric Scroggins, and our Canadian counsel Macleod Dixon, whose efforts were led by Justin Ferrara, for their sterling efforts in helping to complete this sale," Brincko said. CFL has been financially and operationally independent from its parent company, CF, and is not part of the September 2002 bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party filed by CF. Full transportation operations have continued unabated throughout this time period. CFL is an industry-leading supply chain services company, specializing in time-sensitive and expedited services. Operations in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. include less-than-truckload (LTL LTL - Linear Temporal Logic ), full load (TL), and parcel transportation, sufferance warehouses, customs brokerages, international freight forwarding, fleet management and logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet . In addition to the CFL sale, CF, as part of its bankruptcy and liquidation proceedings, has to date sold real property and equipment for more than $350 million. |
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