A Missoula, Mont., bankruptcy judge approved a reorganization plan for Jim Palmer Trucking May 8, allowing the company to escape Chapter 11.
Creditors, including Transportation Alliance Bank, Volvo Financial Services and Transport Finance, agreed to lengthen the company's payment schedule, while certain employees worked longer hours and took a pay cut, according to the company.
"While the bankruptcy was a difficult period for us, the restructuring strengthened our operations and our continued viability," said President Lonnie Wallace in a statement. "Over the last year we have seen over 7 percent of capacity exit the industry. We are very fortunate to have survived these challenging economic times."
The Missoula-based trucking company filed for Chapter 11 bankruptcy protection in July 2008 along with its subsidiaries, Jim Palmer Equipment and Jim Palmer Equipment II. At this time, creditors were threatening to take one-fourth of the carrier's truck fleet, according to published reports. The three companies were delinquent on between $1.5 million and $2 million in equipment loans and other debts after the carrier's average fuel costs went up 12 percent the previous year. A merger deal with Canadian firm ActionView International also fell through.
Since the Chapter 11 announcement, Jim Palmer managed to restructure its business by changing its leases and equipment contracts and boosting its owner-operator fleet by 72 percent. The company believes these steps will help it return to profitability.
Jim Palmer, which employs 360 people, will continue to use its 250 trucks across 40 states.
Creditors, including Transportation Alliance Bank, Volvo Financial Services and Transport Finance, agreed to lengthen the company's payment schedule, while certain employees worked longer hours and took a pay cut, according to the company.
"While the bankruptcy was a difficult period for us, the restructuring strengthened our operations and our continued viability," said President Lonnie Wallace in a statement. "Over the last year we have seen over 7 percent of capacity exit the industry. We are very fortunate to have survived these challenging economic times."
The Missoula-based trucking company filed for Chapter 11 bankruptcy protection in July 2008 along with its subsidiaries, Jim Palmer Equipment and Jim Palmer Equipment II. At this time, creditors were threatening to take one-fourth of the carrier's truck fleet, according to published reports. The three companies were delinquent on between $1.5 million and $2 million in equipment loans and other debts after the carrier's average fuel costs went up 12 percent the previous year. A merger deal with Canadian firm ActionView International also fell through.
Since the Chapter 11 announcement, Jim Palmer managed to restructure its business by changing its leases and equipment contracts and boosting its owner-operator fleet by 72 percent. The company believes these steps will help it return to profitability.
Jim Palmer, which employs 360 people, will continue to use its 250 trucks across 40 states.
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