Trailmobile files for bankruptcy
Dec 14, 2001 12:00 PM
Chicago-based trailer manufacturer Trailmobile Trailer LLC has filed for Chapter 11 bankruptcy protection. However, its Canadian subsidiary, Trailmobile Trailer Canada Limited (TCL), is not included in any of its Chapter 11 filings. Trailmobile Canada manufactures dry-freight trailers for commercial trucking customers in Canada and the United States and is based in Mississauga, Ontario. Trailmobile Canada said it will continue to operate as a separate legal entity, with a separate and distinct financing arrangement from all other affiliated Trailmobile companies. "We have had some preliminary discussions with our primary secured lender, TYCO Capital," said Frank Michalargias, CFO for TCL. He added that Trailmobile Canada has not made any unconditional guarantees with respect to Chapter 11 filings by its U.S.-based parent, whether for the benefit of lenders or any other parties. "Given our relationship, we are assessing whether a write-down will be required with respect to the Canadian $2.3 million due to Trailmobile Canada," said Tom Wiseman, Trailmobile Canada’s president.
