Kenosha-based JHT Holdings Inc. has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court, District of Delaware. JHT, through its operating subsidiaries, including Active Truck Transport LLC, Automotive Carrier Services Co. LLC and Unimark LLC, is a leading provider of transportation services for manufacturers of medium- to heavy-heavy duty trucks throughout the United States, and the company also transports imports from Canada and Mexico. The company announced it has reached agreement with its lenders to restructure its balance sheet through a voluntary, pre-negotiated Chapter 11 reorganization.
JHT already has reached agreement with a significant majority of its lenders on the reorganization plan. Under the proposed plan, JHT’s current lenders will convert a portion of their debt to equity and become the owners of the reorganized JHT. Under the proposed plan, JHT’s outstanding bank debt will be reduced by more than 40 percent, and annual cash interest expense will decrease by more than 50 percent. "Yesterday’s action is simply a strategic financial decision on the part of JHT Holdings that will not impact the day-to-day operations of our subsidiary companies," said James Welch, chief executive officer of JHT. "This approach is in the best interest of employees, customers and suppliers because it will enable us to dedicate more of our capital to business operations. Once the financial restructuring efforts are complete, we will be in an even better position to serve customers and capitalize on new opportunities within the industry."
JHT said it is taking the action to strengthen its balance sheet so it is better-positioned to weather the current weak truck manufacturing market and manage the cycles inherent in the transportation industry. "JHT and its lenders have great confidence in the future success of the Company and the fundamental strength of our business model," Welch said. "Our lenders have demonstrated this confidence through strong, enthusiastic support of the reorganization plan and their commitment to provide both short- and long-term financing … We want to emphasize our intention to continue normal day-to-day operations throughout the U.S. and Canada."
