Four Subsidiaries of U.S. Trucking, Inc. Voluntarily File
Chapter 11
CHARLESTON, S.C.--(BUSINESS WIRE)--Dec. 1, 2000--U.S.
Trucking, Inc. (OTCBB:USTK), announced today that its four
operating subsidiaries have filed voluntary petitions to
effect an orderly liquidation of their assets with the
cooperation of the Company's primary secured lender.
UST Logistics, Inc., Mencor, Inc., Prostar, Inc., and Gulf
Northern Transport, Inc. filed bankruptcy petitions on
Thursday, November 30 in the United States Bankruptcy Court,
Middle District of Florida, Jacksonville Division.
Commenting on the filings, Dan L. Pixler, Chairman and CEO of
U.S. Trucking, Inc., stated, "It's important to note that the
publicly traded holding company, U.S. Trucking, Inc., is
moving forward and is not involved in these bankruptcy
proceedings. While the loss of revenues from these companies
will dramatically impact our consolidated revenues and
earnings as a whole, we anticipate bringing on substantial
profitable revenues soon.
"Placing our operating subsidiaries into bankruptcy was not an
easy decision. Along with the rest of our industry, we have
obviously encountered a difficult operating year. We were
particularly hurt by a lack of adequate information systems.
As we had made several large acquisitions, the inability to
integrate key information systems and obtain current operating
and financial information resulted in an inability to
adequately manage these new businesses and to make informed
decisions."
In connection with the bankruptcy filings, the Company has
entered into an agreement with its primary lender for
repayment of any deficiencies which may be left after
liquidation of the collateral. The agreement provides for
payment of the deficiency over three years, including payments
based upon a fixed percentage of the Company's ongoing
revenue.
In addition, Pixler commented, "The new management team is
dedicated and committed to incorporate the lessons learned
from the past year and to immediately begin rebuilding a
quality company. Our plan is to rebuild with an agency concept
that creates no long term or equipment debts. In fact, we are
currently negotiating with several small carriers to establish
agent programs that could initially generate revenues of
approximately $15 million annually, with the goal of reaching
a profitable $50 million revenue base over the next 12 months
for the Company."
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About US Trucking, Inc.
U.S. Trucking, Inc. is a publicly traded transportation
services holding company.
Statements in this news release that relate to future plans,
financial results or projections, events or performance are
forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. While these
statements are made to convey to the public the Company's
progress, business opportunities, and growth prospects,
readers are cautioned that such forward-looking statements
represent the management's opinion. Where management believes
such representations to be true and accurate based on
information available to the Company at this time, actual
results may differ materially from those described. The
Company's operations and business prospectus are always
subject to risk and uncertainties.
CONTACT: U.S. Trucking, Inc., Charleston
Dan Pixler, 843/972-2055
