Simon Transportation prepares for asset sale
Mar 13, 2002 12:00 PM, Gary MacklinSimon Transportation Services has filed a motion with its bankruptcy court for an order approving the sale of assets. Included in the filing was an outline for a potential bid for assets from Central Freight Lines of Waco TX. Central is controlled by Jerry Moyes, the majority stockholder in Simon. It seeks to acquire substantially all assets of Simon Transportation Services and its primary subsidiary, Dick Simon Trucking. Simon Transportation has requested authority to retain Morgan Keegan & Company to facilitate the sale in a four-week process that will include bids from parties other than Central. An auction will be conducted at a hearing before the court.
In comments on the court filing, Jon Isaacson, Simon CEO, said, "We believe that the successful sale of the assets and related operations of the Company will insure our ability to continue to provide high quality service to our customers and preserve more employment opportunities for current employees. We have been informed by representatives of Mr. Moyes and Central Freight that it is their intent (if successful in their bid) to continue the Company's temperature controlled operations and operate the acquired assets and operations separately from Central's other operations."
In other developments, Dick Simon Trucking has met all the conditions necessary to keep its auto and general liability insurance coverage in place. Also, the company has agreed to delist its Class A stock from the Nasdaq National Market. The stock will not trade on any market following the proposed sale of assets.