JHT Holdings emerges from Chapter 11; Testman named CEO
The Chapter 11 process was a strategic financial decision on the part of JHT Holdings to strengthen its balance sheet so it was better positioned to weather the current weak truck manufacturing market and manage the cycles inherent to the transportation industry, the company said.
The Trucker News Services
10/28/2008
KENOSHA, Wis. — Truck transporter JHT Holdings Inc. has emerged from Chapter 11 bankruptcy protection and named Michael Testman as its new CEO to implement its reorganization plan, the company reported Monday. Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware earlier this month approved the company’s plan.
“JHT Holdings is pleased to announce its emergence from Chapter 11, only four months after filing,” said JHT Holdings CFO Christopher Reehl. “The rapid emergence from Chapter 11 is due to the foresight of the company, the fundamental strength of its business model and the great confidence the lenders have in the company.”
In June, JHT Holdings reached agreement with its lenders to restructure its balance sheet through a voluntary, pre-negotiated Chapter 11 reorganization. At the time, the company predicted that it would emerge from the Chapter 11 process within six months.
The Chapter 11 process was a strategic financial decision on the part of JHT Holdings to strengthen its balance sheet so it was better positioned to weather the current weak truck manufacturing market and manage the cycles inherent to the transportation industry, the company said.
“Company leadership is now focused on beginning the next chapter for JHT Holdings, including several new developments that will make JHT Holdings a stronger and more efficient company, better positioned to serve its customers and capitalize on new opportunities within the industry,” said Reehl.
The first of those developments is naming Michael Testman as its new CEO, JHT Holdings said.
Testman is currently president of ATC Leasing, a JHT Holdings’ subsidiary company. The appointment will be effective November 1.
Testman has more than 20 years of experience in the truck transportation industry, having also served as CFO and controller for other companies in the industry. In addition to having a strong financial understanding of the industry, Testman brings a fundamental understanding of all levels of truck transportation, including internal and external support, labor involvement, logistics coordination and customer service to JHT Holdings, according to the company.
“JHT Holdings has a very bright future ahead of it, thanks to an exceptional management team, a fundamentally strong business model and an effective reorganization plan,” said Testman. “All of these strengths were evident in the way the management team led the company through the financial reorganization. The company assured customers it would maintain the highest levels of customer service throughout the reorganization and it has.”
Testman will replace interim CEO James Welch, who joined JHT Holdings in September 2007 to guide it through a challenging financial situation resulting from the weak truck manufacturing market.
Welch will become the president and chief executive officer of Dynamex Inc., a provider of delivery and logistics services, effective November 1.
JHT Holdings Inc., through its operating subsidiaries, including Active Truck Transport LLC, Automotive Carrier Services Co. LLC and Unimark LLC, provides transportation services for manufacturers of medium- to heavy-heavy duty trucks throughout the United States, and on import from Canada and Mexico. Through its predecessors, it has been performing truck transportation services for more than 75 years.
JHT’s operating companies transport approximately 95 percent of the new heavy duty Class 8 trucks and roughly 50 percent of the new medium duty Class 5 thru 7 trucks from the manufacturers’ plant site location to their dealership network, the company said. They utilize a staff of approximately 1,300 drivers.