Integrated Freight Corp. has reached an agreement with its single largest creditor group, thereby reducing its total outstanding debt.
The investment group, led by Tangiers Investors, reached a deal with Integrated Freight that lowered the motor freight company’s outstanding debt by more than $5 million or about 35 percent of its fiscal year end 2012 debt. The agreement calls for the conversion of the Tangiers debt into a new class of preferred stock, as well as future cash payments that will be disclosed in future filings.
This conversion, when combined with other debt conversions and settlement agreements, has resulted in a nearly $10 million increase in Integrated Freight’s net equity.
“The IFCR management and board are pleased the Tangiers and associated investor group expressed their confidence in the company's recovery plans and revamped strategic direction,” said David N. Fuselier, chairman and CEO, in a written statement. “This is a healthy, long-term commitment that we believe expresses our creditor/investor partners’ belief in this industry and, more specifically, Integrated Freight.”
“We are avid proponents in Integrated's new direction,” added Robert Papiri, managing director at Tangiers. “Management has executed a solid turnaround plan and we remain optimistic about the company's growth prospects in the U.S. transportation industry.”