Michigan-based trucking giant files for bankruptcy
The Grand Rapids Press reports Gainey took the action Tuesday after Wachovia Corp. filed a lawsuit last month claiming the transport company failed to repay more than $238 million of a $260 million loan taken out in 2006.
The Associated Press
10/15/2008
GRAND RAPIDS, Mich. — Grand Rapids-based trucking giant Gainey Corp. and five of its subsidiaries have filed for Chapter 11 federal bankruptcy protection.
The Grand Rapids Press reports Gainey took the action Tuesday after Wachovia Corp. filed a lawsuit last month claiming the transport company failed to repay more than $238 million of a $260 million loan taken out in 2006.
Chapter 11 is designed to allow a business to operate while developing a reorganization plan and keeping creditors at bay.
Owner Harvey Gainey says he blames the situation on the nation’s credit crunch.
His company is one of the nation’s largest privately owned trucking firms with 2,300 employees and annual revenues topping $400 million.