Ronnie Dowdy Inc., Batesville, Ark., has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The company said it intends to emerge from the reorganization through its efforts to reduce expenses and improve efficiencies.
The decision to reorganize was made necessary by several factors affecting the trucking industry, the release said. These include the slowed economy with downward pressure on rates and freight volumes, a drop in used equipment values, and high insurance and claims costs. Those factors led to losses.
"This is a difficult decision in the life of our company," said Ronnie Dowdy, president and CEO, "and we regret the negative effect the filing will have on some of our vendors and other business partners. However, we are convinced that the protection gives us the best opportunity to be successful on a go-forward basis."
Ronnie Dowdy Inc. is a truckload temperature-controlled carrier operating 260 tractors and 425 trailers, according to its website.
The company said it intends to emerge from the reorganization through its efforts to reduce expenses and improve efficiencies.
The decision to reorganize was made necessary by several factors affecting the trucking industry, the release said. These include the slowed economy with downward pressure on rates and freight volumes, a drop in used equipment values, and high insurance and claims costs. Those factors led to losses.
"This is a difficult decision in the life of our company," said Ronnie Dowdy, president and CEO, "and we regret the negative effect the filing will have on some of our vendors and other business partners. However, we are convinced that the protection gives us the best opportunity to be successful on a go-forward basis."
Ronnie Dowdy Inc. is a truckload temperature-controlled carrier operating 260 tractors and 425 trailers, according to its website.
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