Wilmington, DE-based Matlack Systems Inc. announced it 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 U.S.
The purchasers also will assume certain real property and equipment leases and have indicated an intent to continue to service the 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.
Also, 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 August 31. All remaining assets will be disposed of or sold.
The net proceeds received from the asset sales described in this press release will be applied to outstanding debts of the Company. The Company does not anticipate that the aggregate net proceeds from prior sales of assets, the sales of assets described in this press release, future sales of assets and other 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; Whiting, IN; Louisville; Gonzales, LA; St Louis; Elizabethport, NJ; Norwood, OH; Charleston and Spartanburg, SC; Memphis; Channelview, Freeport, and Houston TX; Nitro, WV; and Sarnia, ON, Canada. Superior also intends to work with Matlack regarding continuing relationships with Matlack fleet operator terminals in Chattanooga and Nashville TN and Westville IN.