Cudahy-based Roadrunner Transportation Systems Inc.
has “terminated” chief financial officer Peter Armbruster as the company continues to sort through accounting errors that will require millions of dollars in adjustments to the company’s results.
Armbruster had served as the company’s chief financial officer since December 2005. The company said he would be “leaving the company” in a press release issued Monday but said in securities filings that he was "terminated" on March 29.
The company said it would make an announcement about Armbruster's successor in the near future.
Roadrunner, which provides less-than-truckload transportation and other logistics, also announced it had reached an agreement with its lenders to extend an interim credit facility while a long-term loan amendment is worked out.
The company’s lenders agreed to hold off on enforcing any default or breach of covenant actions until May 19. The lenders had previously extended forbearance through March 31.
As of Friday, the company had more than $492.2 million in debt, according to securities filings.
“Today’s announcement marks another step towards our long-term credit solution,” said Curt Stoelting, Roadrunner president and chief operating officer. “Extending the interim agreement helps us to remain focused on serving our customers and clients while we conclude successful negotiations with our lender group.”
Roadrunner has delayed filing its fiscal 2016 annual report with the SEC until after the long-term loan amendment is completed.
The company is also in the process of restating its financial results from 2015 and 2016. Roadrunner announced in January
it had discovered accounting discrepancies in its Morgan Southern and Bruenger subsidiaries. The errors involved unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables and linehaul and other driver payables.
Roadrunner has said it expects to make $20 million to $25 million in adjustments to its results. The company also initially anticipated a $175 million to $200 million non-cash goodwill impairment charge, but has since increased that figure to “at least $200 million.”
The company also faces legal challenges
from shareholders. Roadrunner's stock price fell more than 35 percent after it disclosed the accounting problems.