Greatwide financing approved; proposed sale on track for Jan. ’09

The court-approved financing, coupled with the cash generated from Greatwide’s daily operations, is more than adequate to meet the daily operating needs of the business and provides additional operational and financial stability as Greatwide proceeds with its financial restructuring and proposed sale, the company stated.

The Trucker News Services

11/26/2008

DALLAS — Greatwide Logistics Services said Tuesday that it has obtained final court approval of its $73.6 million financing facility, money to keep the company in business during its ongoing reorganization. Greatwide sought Chapter 11 protection Oct. 20, and previously received interim approval on October 22.

The financing, coupled with the cash generated from Greatwide’s daily operations, is more than adequate to meet the daily operating needs of the business and provides additional operational and financial stability as Greatwide proceeds with its financial restructuring and proposed sale, the company stated.

“Final Court approval of our financing agreement is another important step forward in our sale process,” Raymond B. Greer, president and CEO of Greatwide, said. “We have already made good progress, we have sufficient cash in place and we are confident that our financial restructuring and proposed sale is the best way to address our capital structure needs while avoiding disruptions to our operations and customer service.”

Greer added that a plan to sell the company is on track to close by the end of January 2009.

As previously announced, Greatwide said it expects that the proposed sale, once approved by the Court, will help it to significantly reduce debt, enhance its competitiveness and financial strength, and position it for continued growth and profitability. The company anticipates completing its financial restructuring process and closing the transaction by the end of January, approximately 100 days from the date of filing. Greatwide will continue operating under the Greatwide name under new ownership.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.