Simon Transportation Services Inc. and its subsidiary, Dick Simon Trucking Inc., have announced its intention to file a liquidation plan and cancel the interests of all common shareholders.
"We are very pleased that after the sale, the company's former operations and employees have continued under the ownership and management of Central Freight," Simon CFO Rob Goates said. "However, following the sale it is clear that Simon does not have sufficient assets or revenue-generating capacity to pay its liabilities or to continue operations of any kind."
In April, Simon closed the sale of substantially all of its assets to Central Freight Refrigerated Services. In addition, Central Freight assumed certain of the company's liabilities. Although the transaction represented a significant benefit to the company, the Simon said its liabilities currently exceed its assets by a substantial margin.
The company said it expects unsecured creditors will receive, at best, cents on the dollar for their claims. Accordingly, the company said it does not expect the holders of its common stock to receive any return of their investment or any distribution under the liquidation plan.