An attorney for the Teamsters union says a Texas man's plan to buy and restart Vancouver-based Consolidated Freightways provides the best opportunity for restoring jobs lost when the trucking company shut down in September,
according to a story Tuesday in The Columbian.
Fred Perillo, who represents the Teamsters union, considers Frank Snell's offer as legitimate as any others after watching Snell of Fort Worth present creditors with several years worth of business plans at a U.S. Bankruptcy Court meeting in Riverside, Calif., last week.
"I can't envision anyone restarting a company if they weren't serious," said Perillo, whose offices are in Milwaukee. Meanwhile, Snell said Tuesday in a telephone interview with the Vancouver, Wash. newspaper that his investor group has offered creditors more than $500 million to buy and restart the company as CF Freightways. In the next 10 days, Snell intends to present a short-term operating budget to bankruptcy court Judge Mitchel Goldberg. Snell said a favorable ruling would keep the company running. He wants to get the first truck rolling by Nov. 1.
Perillo, who has represented the union in two separate bankruptcy cases, estimates 5,000 union employees would be rehired if creditors and the court accept Snell's offer. A total of 15,500 workers were affected when Consolidated Freightways filed for Chapter 11 bankruptcy and closed its doors Labor Day weekend. The company had reported operating losses for the 18 months ending June 30 of $175.9 million.
Snell's plan isn't the only one creditors are considering, but is believed to stand apart in its attempt to restart Consolidated Freightways. Perillo said there are more than 20 plans to purchase the company's property and 10 to assume control of its subsidiaries in Mexico and Canada.
Perillo said Snell already has reached a tentative agreement with Teamster drivers that provides a temporary 15% reduction of wages. Snell formed Rollin' International on Oct. 7 in Texas as a holding company for CF.
Snell projects the rejuvenated CF would carry 35% of the company's previous freight loads and increase to 70% within two years. He also expects the company would rehire 35% of its work force. The company's headquarters initially would remain in Vancouver, but Snell said he would expect to eventually move the office to a Central time zone state.
Snell, who calls himself a semiretired businessman who made his money in real estate and oil, said he put together the deal to save Consolidated Freightways to preserve as many jobs as possible. Snell said he has no experience in the trucking industry, but is confident he can return the company to profitability.