Consolidated Freightways Corp. (CF) has signed a letter of intent with CF Canada Acquisition Ltd. to sell the assets of its Canadian subsidiary, Canadian Freightways Ltd. (CFL),
and the assets of certain of CFL's subsidiaries.
The agreement contemplates a purchase price of about $90 million, including assumption of liabilities.
CFCAL is a group comprised of current CFL senior management and a financial partner.
Last week, the bankruptcy court issued a bidding procedure order. Final sale requires completing a definitive agreement incorporating the conditions of the letter of intent as well as other conditions, and securing approval of the transaction by the court.
CFL is an industry leading supply chain services company, specializing in time-sensitive and expedited services. Operations in Canada and the United States include less-than-truckload, full load and parcel transportation, sufferance warehouses, customs brokerage, international freight forwarding, fleet management and logistics management. Canadian Freightways won the 2002 Consumers Choice Award for best transportation company in Calgary and Edmonton.
CFL is financially and operationally independent from CF and is not part of the September 2002 bankruptcy proceedings filed by the parent company.
Documents related to all of CF's asset sales, including those involving the sale of CFL, are posted at the company's web site at www.cf.com.