Simon Transportation announces liquidation plan
Jun 14, 2002 12:00 PM, Gary Macklin
Simon Transportation Services, Salt Lake City UT, has announced that it intends to liquidate the company entirely and cancel the interests of all holders of common stock. The company has previously sold substantially all its assets to Central Freight Refrigerated Services, Waco TX. Central is controlled by Jerry Moyes, the majority stockholder of Simon. In addition to purchasing assets, Central assumed some Simon liabilities. Although the asset sale generated cash, Simon’s liabilities still exceed its assets. Working from that reality, Simon says that unsecured creditors will receive no more than a few cents on the dollar for their claims. Stockholders will receive no return on their investment or any distribution from the liquidation. Operations have continued under the ownership of Central, which employs a majority of Simon’s former staff. Following the sale, what is left of Simon does not have the assets or the revenue-generating capacity to pay its debts or to continue operation. The company has requested that trading in its stock cease entirely.
