Rocor International files bankruptcy, contemplates sale
Aug 8, 2002 12:00 PM, Gary MacklinRocor International, Oklahoma City OK, operating as Rocor Transportation filed for Chapter 11 bankruptcy protection in federal court in the Western District of Oklahoma on August 6, 2002. The court case number is 02-17658 WV. The filing follows months of corporate downsizing, reducing the fleet from 2,400 truck and drivers to about 850 tractors, 1,100 trailers, and 1,000 drivers and other workers. The Daily Oklahoman newspaper in Oklahoma City reported 484 employees in Oklahoma in September 2001.
The purpose of the downsizing has been to pare operations to a profitable core of customers and traffic lanes, says William M Wiley III, chief executive officer. In that exercise, Rocor has shut down its logistics division, divested or closed regional operations, and expanded its freight brokerage.
Rocor, the fourth largest refrigerated carrier in Refrigerated Transporter’s annual Gross Revenue Report most recently reported revenue for 2000 at $269.9 million, down from $340.7 million in 1999. Reports suggest that revenue fell to $160 million for 2001. The company was built from the acquisition over the years of smaller carriers including Altruck, Bray Lines, RTC Transportation, and others, often in marginal condition at the time of purchase.
Court records show about $40 million in unsecured debt, of which, $29 million is held by Apex Trailer Rental for equipment financing. Other creditors include Citi Capital, Comdata, MBC Leasing, Navistar International, and Transamerica. The company says in court papers that creditors can expect payment.
Prior to the filing, CHM Acquisitions, an Oklahoma investment company expressed an interest in acquiring Rocor assets for cash and lease assumptions. Rocor says it is considering the offer. Mortan Keegan & Co has been retained by Rocor to advise of any proposed sale. Spencer Fane Britt & Brown, a Kansas City law firm, is Rocor’s bankruptcy counsel.