Consolidated Freightways Corp. (CF) received interim approval from the U.S. Bankruptcy Court on Friday for $225 million in debtor-in-possession (DIP) financing. The company also re-opened certain terminals and called back laid-off drivers and terminal employees to expedite customer shipments remaining in its system.
"Each of our employees has been notified either in person, by phone or in writing as to the events of the past few days, and we are on the phone with customers working to get their freight to them as quickly as possible," said CEO John Brincko.
Brincko, a turnaround specialist who was brought in three months ago to replace Pat Blake, added that in rehiring drivers and terminal employees, CF has taken positive steps to ensure that all shipments are completed.
The company's DIP financing line is from General Electric Capital Corp, and the final hearing to approve the DIP line will be held next month. The DIP facility, including approximately $40 million in new financing, will be available to the company to proceed with an orderly liquidation.
