Copyright 2008, Traffic World, Inc.
Greatwide Logistics Services filed for Chapter 11 bankruptcy protection and plans to be acquired by some of its secured lenders to lighten its debt load. The lenders leading the takeover will provide $73.6 million in debtor-in-possession financing to support the company through the sale process.
First lien secured lenders Centerbridge Capital Partners and the D.E. Shaw Group are leading the purchase, which must also clear bankruptcy court provisions allowing other potential purchasers to offer higher or better terms. "Greatwide''s fundamentals are solid," said Raymond B. Greer, Greatwide president and CEO. "We believe the proposed transaction is a prudent and necessary step to significantly reduce our debt and interest burden in order to enhance our flexibility to continue to invest and grow."
Founded in Dallas in 2000, privately-held Greatwide quickly became a $1 billion logistics services company, eventually ranking 24th on Traffic World''s Top 100 list of logistics providers.