Printer Friendly

LEASEWAY EXITS CHAPTER 11

 CLEVELAND, Sept. 14 /PRNewswire/ -- 1993 Leaseway Transportation announced today that it has emerged from Chapter 11 and its Plan of Reorganization has become effective, thereby successfully completing a financial restructuring of the company.
 In making the announcement, Richard A. Damsel, Leaseway Transportation's chairman and chief executive officer, said, "It is an outstanding accomplishment that within 10 months of filing for protection we are exiting Chapter 11 and emerging as a financially strong company with a healthy balance sheet."
 Under the terms of the restructuring, the company's subordinated debentureholders received virtually all of the common stock of Leaseway Transportation Corp. in exchange for their debentures and accrued interest. With the exchange of securities that occurred today, Leaseway Transportation is once again a publicly-held company.
 Overall, the financial restructuring significantly strengthened the company's balance sheet by removing approximately $500 million of long- term debt and accrued interest. In addition, the company entered into a long-term credit agreement with its senior lenders that will provide financing through 1997.
 Commenting further on the financially restructured company, Damsel said, "Our quick exit from Chapter 11 has surprised our competition and impressed our customers. We owe a great deal of thanks to our employees, customers, suppliers and advisors for their unwavering support. Because of this support," added Damsel, "we continued to provide our customers with the high-quality transportation and logistics services for which we are known."
 Damsel continued, "With the restructuring effort behind us and a significantly improved financial condition ahead of us, we are well positioned to grow our business and to build on our many years of experience in serving the retail, automotive, food and drug and manufacturing industries. As for our competition, as our exit motto says, `Look out, we're out!'"
 Leaseway Transportation is a group of companies which provides customized transportation and logistics support services to manufacturers, distributors and retailers.
 -0- 9/14/93
 /CONTACT: Karen L. Beier of Leaseway Transportation, 216-765-5340/


CO: Leaseway Transportation ST: Ohio IN: TRN SU: BKY

BM -- CL023 -- 1833 09/14/93 14:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 14, 1993
Words:338
Previous Article:BROWN-FORMAN TO PURCHASE STOCK FOR RESTRICTED STOCK PLAN
Next Article:FAIR SAYS NO NAFTA WITHOUT EFFECTIVE IMMIGRATION CONTROLS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters