LTL trucking company

The Company is primarily a less-than-truckload (LTL) freight carrier, operating across the 48 contiguous United States. In addition to LTL, full truckload, brokerage, and dedicated local cartage services were offered to their corporate client base.

The Company was embroiled in a financial crisis when Fort Dearborn was asked to assist the business: no credit availability, no current general ledger or financial reporting (last financials had been prepared 14 months earlier by an outside accountant), and no sense of the true cost structure or profitability of the business.

Due to the severe liquidity crisis, quick action was required 

–Since the seasonal business was coming into its strongest months, a small window existed where the Company could cover its immediate operating costs and

–Accordingly, to maximize returns to the secured lenders and thereby limit the personal guarantee obligations of the Owners, Fort Dearborn was engaged to develop and implement a plan to maximize overall value.

With all other options exhausted, reorganization and wind-down alternatives were considered. Based on industry practices and strained vendor and customer relationships, it was likely that the Company could not survive a Chapter 11 reorganization and a wind-down strategy was adopted.

The Company had contacted a local direct competitor and was able to arrange for immediate new employment for most of its employees, and satisfaction of its customer needs.

Receivable collection was successfully managed for several months by former Company employees, assisted by Fort Dearborn and outside legal counsel, as required.

Fort Dearborn marketed tangible assets, generating several offers and closing a transaction with an out-of-state buyer for the extensive truck and trailer fleet.  Smaller assets were sold at public auction. The value realized exceeded expectations of all parties involved.