By FreightWaves’ John Kingston
Auto hauler Jack Cooper Transport said it had “successfully completed” the restructuring process that began with a filing in August, the company said in a prepared statement on Nov. 4.
The Kansas City, Missouri-based company also stated that the restructuring “has preserved jobs for more than 2,500 employees.” More than 2,000 of its employees are union members, the company said.
Back in August, the Teamsters urged its members to approve a new contract that would allow the survival of Jack Cooper and preserve union jobs. The union rank-and-file did so in September.
According to the Federal Motor Carrier Safety Administration’s SAFER website, Jack Cooper has 1,511 power units and 1,324 drivers.
The restructuring cut the company’s debt level by more than $300 million, according to Michael Riggs, chief executive officer of Jack Cooper.
“With debt reduction of more than $300 million, a new Teamsters contract that helps ensure our future financial viability, and new ownership by long-time partner Solus Alternative Asset Management, Jack Cooper is now well equipped to better compete, grow our market share, and continue to successfully serve our customers for years to come,” Riggs said in the statement.
Solus is the New York-based company that had been a junior lender to the company and also provided debtor-in-possession financing to Jack Cooper during the Chapter 11 process. It now is the owner of the company, receiving equity in exchange for debt cancellation.
The statement announcing the exit from Chapter 11 reiterated earlier declarations that the company would now use its debt-reduced position to replace 80% of its existing fleet.