The bankrupt Dick Simon Trucking has been sold. On Tuesday the U.S. Bankruptcy Court in Salt Lake City approved the sale of the refrigerated Utah-based carrier and parent Simon Transportation Services to Central Freight Lines
, Waco, Texas, for $152 million.
Published reports indicate Central will take over the company on April 22, meaning workers at Simon will be able to keep their jobs. The company employs about 2,300 people, including some 1,800 drivers.
The deal reportedly involves the sale of $100 million in leased trucks and equipment and another $52 million in other assets, as well as assuming another $23 million in debt. The transaction will lead to the creation of a new division at Central Freight Lines.
Simon Transportation filed for Chapter 11 bankruptcy reorganization in late February, immediately slashing thousands of jobs, including truck drivers. At the time the company cited less business, an inability to find qualified drivers and problems resulting from the acquisition of two trucking companies in 2001 as the reasons for the bankruptcy filing.
Dick Simon has also reportedly had to deal with its largest creditor, Mercedes Benz Credit Corp., and has been talking with them about restructuring their debt to the company.
The company is expected to keep the Dick Simon name through the end of the year and will then start operating under the Central Freight Lines banner. Plans call for Simon to keep its current headquarters in West Valley, Utah, operating with a smaller fleet of 1,500 tractors and 2,000 trailers. The deal will return the company to private ownership for the first time since going public in 1995.
This deal keeps Simon under the control of Jerry Moyes, the majority stockholder in Simon. Moyes already heads up Phoenix-based Swift Transportation. Moyes says the purchase of Simon is unconnected to the operations of Swift, which purchased M.S. Carriers last year.