Wilmington DE-based Matlack Systems Inc has signed definitive agreements with Quality Distribution Inc, Superior Bulk Logistics Inc, and other parties to sell certain terminals, equipment, and other assets. Matlack, which filed for Chapter 11 protection in March, was one of the largest tank truck carriers in the United States.
The purchasers also will assume certain real property and equipment leases and have indicated an intent to continue to service customers at the respective terminals. The aggregate value of these transactions is approximately $22 million, and the assets being sold are responsible for more than one-half of the company's volume of business. These transactions are subject to the approval of the bankruptcy court.
The company said it has signed letters of intent to sell other terminals and additional trailers and tractors to four unrelated parties. The company's remaining terminals are in the process of being closed with all operations expected to cease by Aug 31, 2001. All remaining assets will be disposed of or sold.
Net proceeds received from the asset sales will be applied to outstanding debts of the company. The company does not anticipate that the aggregate net proceeds will be sufficient to permit any distribution to stockholders.
According to a report in the July 2001 issue of Modern Bulk Transporter, Superior Bulk Logistics is buying most of the terminal network owned by Matlack. Facilities in the Superior deal are in Parker AZ; Savannah, Atlanta, and Brunswick GA; Chicago IL; Whiting IN; Louisville KY; Gonzales LA; St Louis MO; Elizabethport NJ; Norwood OH; Charleston and Spartanburg SC; Memphis TN; Channelview, Freeport, and Houston TX; Nitro WV; and Sarnia, Ontario, Canada. Superior also intends to work with Matlack regarding continuing relationships with Matlack fleet operator terminals in Chattanooga and Nashville TN and Westville IN.