Jim Palmer Trucking files for Chapter 11 protection

Jim Palmer Trucking will continue normal operations, the company announced.

The Trucker News Services

7/14/2008

MISSOULA, Mont. — As expected, Jim Palmer Trucking and its two subsidiaries, Jim Palmer Equipment and Jim Palmer Equipment II, have filed for chapter 11 bankruptcy protection in U.S. Bankruptcy Court, the company announced today on its Web site.

“Like the rest of the transportation industry, JPT has struggled with soaring and unrelenting diesel fuel prices since the beginning of the year,” company President Lonnie Wallace said. “There will continue to be a monumental effort to ensure the survival of the company and its affiliates through the bankruptcy courts work out plans.”

Wallace said the protection offered Jim Palmer Trucking through the filing would allow the company the time to reorganize and emerge as a leaner and stronger organization.

“As we move through this process we will continue normal day-to-day operations,” Wallace said. “In addition, the entire fleet will be analyzed to determine which trucks can be replaced with more fuel-efficient equipment. Possible workout plans may include negotiating the leases on existing trucks and trailers with creditors, paying existing debt over a longer period of time with lower interest, or attracting new capital to purchase newer, more efficient equipment.

“All of our major accounts have been notified and every one of them has expressed an interest in continuing to work with us during this difficult time.

“Jim Palmer Trucking will move forward with a successful business plan focusing on a lean, productive, and profitable organization. Rest assured that our management team will work diligently to restore the success of our company. We will continue to provide the excellent service that our customers deserve from us. We owe this to Jim Palmer, the employees, the community and our valued customers.”

CEO Jim Palmer also issued a statement on the Web site:

“I would like to take this opportunity to personally thank all of our dedicated employees, drivers and owner-operators for their continued support in these difficult times.”