Consolidated Freightways Corp. (CF) plans to sell the operations of Canadian Freightways and its subsidiaries (CFL) at auction to the highest bidder on August 25, 2003.
CFL is financially and operationally independent from its parent company, CF, and is not part of the September 2002 bankruptcy proceedings filed by CF. CFL has continued day-to-day business operations since then.
CF said that a potential buyer, an entity led by a Canadian capital management firm, has signed an agreement to purchase the assets of CFL and other Canadian assets owned by CF and affiliates for approximately $90 million U.S. However, the agreement and the proposed offer are subject to higher and better bids from competing bidders.
"We're pleased with the progress thus far in the sale of our Canadian franchise and with the now-established process which we believe will realize maximum value from this premium property," CF CEO John Brincko said.
CF announced in March that it would sell the subsidiary for $90 million U.S. to CF Canada Acquisition Ltd., a group comprised of current Canadian Freightways senior management and a financial partner. However, CF terminated the letter of intent in April.