Greatwide Finalizes Sale to Creditors

Greatwide Logistics Services completed the sale of itself to its creditors, the company said last week.

Under the deal, Greatwide’s new principal owners are its senior creditors, private equity groups Centerbridge Partners and the D.E. Shaw Group, both based in New York.

The two Greatwide creditors agreed to swap 90% of the debt they were owed for an ownership stake in the Dallas-based logistics provider.

Greatwide said the deal with Centerbridge and D.E. Shaw reduced its current debt by $478 million, or 77%. The company listed assets and debt of $500 million to $1 billion in its bankruptcy filing last fall.

Along with the change in ownership and the capital restructuring, Greatwide also announced that former UPS Freight President Leo Suggs will become its chairman.

Suggs, who retired from UPS Freight in 2006, had previously been chief executive officer of less-than-truckload carrier Overnight Transportation, which was sold to UPS Inc. in 2005.