AmeriTruck Distribution Files for Chapter 11 Bankruptcy Protection

FORT WORTH, Texas — AmeriTruck Distribution Corp. filed for Chapter 11 bankruptcy protection and plans to sell the assets of its refrigerated trucking business and use the proceeds to reduce its debt.

The company said it will cease operations of AmeriTruck Refrigerated Transport "as soon as practical" and said the closing could affect up to 1,000 employees.

ast month, Springfield, Mo.-based Prime Inc. signed a letter of intent to acquire AmeriTruck Refrigerated’s business. Prime executives were unavailable Tuesday to comment.

AmeriTruck said some long-standing customers that need refrigerated services will be served by other AmeriTruck companies.

Chairman Michael L. Lawrence said the bankruptcy filing was "in the best interests of our customers, employees and creditors."

"We will now have the opportunity to take further actions to streamline our operations and bring expenses in line with revenue," he said.

AmeriTruck’s specialized carrier and regional LTL groups are still profitable, but the refrigerated business was hurt by competitive pressures and higher-than-anticipated operating expenses, the company said.

The company has funded its acquisition growth strategy largely through debt during the last three years. The weak performance by AmeriTruck Refrigerated and high interest payments have caused "severe liquidity problems," Mr. Lawrence said.

The bankruptcy filing should not affect service in AmeriTruck’s non-refrigerated business segments, the company said. AmeriTruck owns W&L Services Corp., Hickory, N.C.; CMS Transportation Services, Atlanta; Scales Transport Corp. and AmeriTruck Logistics Services, Gainesville, Ga.; and KTL Inc., Largo, Fla.