Trism Announces Debt Agreement

Trism Inc. of Kennesaw, Ga., announced an agreement with bondholders to exchange $86.2 million in debt for a combination of new debt and stock.

The U.S. Bankruptcy Court must review and approve plans from the company, which operates several subsidiaries that handle oversized and overweight freight as well as munitions and hazardous materials.

Trism President Edward L. McCormick said the agreement will permit the company to satisfy all trade and leasing obligations under existing terms and significantly reduce its long-term debt.

Under the restructuring plan, bondholders will exchange 10.75% senior subordinated notes due in the next year for $30 million in notes that will pay 12% interest due in 2004. Bondholders also will receive 95% of new common stock in the company. The existing common stock will converted into 5% of the new common equity.

McCormick said the debt restructuring will permit management to "continue the revitalization of our operations with a solid balance sheet and a sound capital structure."