Troubled hazardous materials and munitions carrier Trism Inc. is reporting that it has overstated its collateral assets by an estimated $4.4 million and has fired its treasurer as a result.
On discovery of the misstatement, Kennesaw, GA-based Trism said it took immediate action by pledging additional property assets to its revolving credit lenders to bring the collateral borrowing base in line with its current loan balance.
An investigation is underway to understand the reason for the misstatement, said Trism, and it has fired Gerald Hendren, the carrier’s treasurer and controller.
This incident comes during a tough time for Trism, which is trying to reorganize its operations. In August, Trism closed it specialized and heavy haul divisions and entered into discussions with its equipment lenders to reschedule certain payments and to return excess tractors.
The carrier now operates a pool of more than 400 tractors and over 850 trailers, down from 1,300 tractor and 4,000 trailers earlier this year.