Motor carrier Gainey files for Chapter 11 protection
Gainey Corp., a major truckload carrier based in Grand Rapids, Mich., filed for Chapter 11 bankruptcy protection on Thursday as the ripple effects from the nation’s financial crisis spread to the overall economy.
The motor carrier said the move was made after lenders, including Wachovia Bank, refused to renegotiate loan terms and sought payments on schedule as they looked to shore up their balance sheets.
Gainey said it will continue to operate under protection from creditors.
“The only reasonable course that will allow us to serve our customers and preserve jobs is a Chapter 11 reorganization filing.
Our sound business fundamentals — which include positive cash flow and operating income — will continue to ensure our uninterrupted operations, including paying all suppliers, delivering all freight and meeting our payroll,' Gainey said in a notice posted on its Web site.
Gainey is the 64th-largest trucking company based on revenue, according to industry publication Transport Topics. It had $400.6 million in revenue last year. It owns nearly 2,200 tractors and about 2,300 employees. Gainey also hauls specialty materials, including refrigerated goods.
Motor carrier Gainey files for Chapter 11 protection
