debts were lower than assets when chapter 11 was filed.....
TRANSPORTATION COMPONENTS: Files Chapter 11 Petition in Houston
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Transportation Components, Inc., which operates as TransCom USA,
and all of its domestic subsidiaries, have voluntarily filed to
reorganize under Chapter 11 of the United States Bankruptcy
Code. The filings, made in federal bankruptcy court in Houston,
will enable the TransCom group to continue to operate their
businesses in the normal course, using their own internally
generated cash and the proceeds of debtor in possession
financing being arranged with the company's bank group.
TransCom's Canadian subsidiary, Wes-T-Rans, and its Amparts
operations in Mexico, are not included in the filings.
TransCom cited a prolonged industry slump, declining sales,
acute liquidity problems, and a heavy debt load as factors
prompting the need to reorganize.
In connection with the filing, TransCom's bank lenders, led by
Bank One, have allowed TransCom the use of their cash collateral
and have agreed in principle to extend the company up to $5.5
million in debtor in possession financing, including $3.5
million immediately and another $2 million to be made available
August 1 of this year if TransCom meets agreed milestones.
To guide it through the reorganization TransCom's Board of
Directors has hired the New York based crisis management and
bankruptcy consulting firm of Bridge Associates LLC. Anthony H.
N. Schnelling, a managing director of Bridge Associates, will
head the Bridge team's efforts on behalf of the company.
Schnelling said, "The TransCom board decided the company's
financial and operational challenges could best be addressed
through a Chapter 11 reorganization. We look forward to
assisting the TransCom board and management in the restructuring
of TransCom's financial obligations and operations." According
to Mr. Schnelling, TransCom is already working toward that goal
on several key fronts, by moving to streamline management,
reduce costs, dispose of non-core businesses, and restructure
its long-term debt.
TransCom also announced that T. Michael Young has resigned as
the company's President and Chief Executive Officer. Mr. Young
will remain a director and continue as Chairman of the Board of
TransCom as it transitions into the reorganization process.
David N. Phelps, previously a senior vice president of the
company, has been promoted to executive vice president. Mr.
Phelps, who will continue as TransCom's chief financial officer,
joins two other TransCom Executive Vice-Presidents, Dan Bucaro,
who heads operations, and David Olsen, in charge of sales, to
form TransCom's principal management team. The three officers,
working with Bridge Associates, will report directly to the
TransCom board.
TransCom's shares stopped trading on the New York Stock Exchange
on April 12, after the company failed to comply with the
exchange's minimum continued listing requirements. Trading in
the over-the-counter market may not begin until the company
files its 2000 annual report with the Securities and Exchange
Commission. The report, due in April, has been deferred pending
clarification of the company's financial uncertainties.
Initiation of the reorganization process should enable TransCom
to complete its 2000 audit and file its annual report some time
in the near future, but TransCom is uncertain if and when
trading in its shares will resume.
Houston based TransCom is a nationwide distributor of heavy duty
truck parts. It has 90 operating locations in the United
States, Canada and Mexico. TransCom's customer base includes
common carriers, private and rental fleets, independent repair
shops, specialty OEMs and others.
TRANSPORTATION COMPONENTS: Chapter 11 Case Summary
--------------------------------------------------
Lead Debtor: Transportation Components, Inc.
Three Riverway, Suite 200
Houston, TX
77056-1942
Debtor affiliates filing separate chapter 11 petitions:
Transcom USA Management Co.
Amparts International, Inc.
Drive Line, Inc.
Gear & Wheel, Inc.
Perfection Equipment, Co.
Transportation Component, Co.
American Truck Transport Equipment, Inc.
TUSA GP, Inc.
TUSA LP, Inc.
The Cook Brothers Companies, Inc.
NEC Leasing, Inc.
Plaza Automotive, Inc.
Brake & Spring, Inc.
Mobile Power & Hydraulics, Inc.
Hardy's Truck Parts, Inc.
Universal Fleet Supply, Inc.
Charles W. Carter Co-Arizona
Charles W. Carter Co-Hawaii, Inc.
K.O.Y. Corp.
Brake Service & Equipment Co. of Florida, Inc.
JDK Industries, Inc.
DSS/ProDiesel, Inc.
Type of Business: TransCom distributes replacement parts and
supplies for commercial trucks, trailers, and
other heavy duty vehicles and equipment
throughout North America and Mexico. The
company also performs parts installation and
repair, fleet maintenance management, machine
shop services, and remanufacturing of brake
shoes, fuel injectors and turbo chargers.
Chapter 11 Petition Date: May 07, 2001
Court: Southern District of Texas
Bankruptcy Case Nos.: 01-35158 through 01-35180
Debtors' Counsel: John F. Higgins, Esq.
Porter & Hedges, L.L.P.
700 Louisiana, Suite 3500
Houston, TX 77002
(713) 2260600
Total Assets: $211,603,000
Total Debts: $118,273,000
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