JHT Holdings, the bankrupt transport services company backed by Stonehouse Capital, has emerged from Chapter 11 four months after its filing. Read more. JHT is based in Kenosha, Wis.
JHT Holdings, Inc. (JHT), a holding company whose subsidiaries provide heavy- and medium- duty truck transportation services, announced today that it had successfully emerged from Chapter 11 and named Michael Testman as its new CEO to fully implement its Plan of Reorganization. The announcement follows the approval earlier this month of the company’s Plan of Reorganization by Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware.
JHT Completes Financial Reorganization
“JHT Holdings is pleased to announce its emergence from Chapter 11, only four months after filing,” said JHT Holdings CFO Christopher Reehl. “The rapid emergence from Chapter 11 is due to the foresight of the company, the fundamental strength of its business model and the great confidence the lenders have in the company.”
In June, JHT Holdings reached agreement with its lenders to restructure its balance sheet through a voluntary, pre-negotiated Chapter 11 reorganization. At the time, the company predicted that it would emerge from the Chapter 11 process within six months.
The Chapter 11 process was a strategic financial decision on the part of JHT Holdings to strengthen its balance sheet so it was better positioned to weather the current weak truck manufacturing market and manage the cycles inherent to the transportation industry.
“JHT is looking forward to fully implementing its Plan of Reorganization and successfully completing its restructuring,” said Reehl. “Company leadership is now focused on beginning the next chapter for JHT Holdings, including several new developments that will make JHT Holdings a stronger and more efficient company, better positioned to serve its customers and capitalize on new opportunities within the industry.”
JHT Holdings announced the first of those developments by naming Michael Testman as its new CEO.
Michael Testman Named New CEO
“We are pleased to announce that Michael Testman has been named as the company’s new CEO,” said Reehl. “He is exactly the right person to complete JHT Holdings’ reorganization and lead the company to future growth and prosperity.”
Michael Testman is currently President of ATC Leasing, a JHT Holdings’ subsidiary company. The appointment will be effective November 1, 2008. Mr. Testman has more than 20 years of experience in the truck transportation industry, having also served as CFO and Controller for other companies in the industry. In addition to having a strong financial understanding of the industry, Mr. Testman brings a fundamental understanding of all levels of truck transportation, including internal and external support, labor involvement, logistics coordination and customer service to JHT Holdings.
“I am excited about the opportunity to help lead this fine company,” said Testman. “JHT Holdings has a very bright future ahead of it, thanks to an exceptional management team, a fundamentally strong business model and an effective reorganization plan. All of these strengths were evident in the way the management team led the company through the financial reorganization. JHT Holdings promised it would exit from Chapter 11 within six months; instead it did it in four months. The Company assured customers it would maintain the highest levels of customer service throughout the reorganization and it has.”
Mr. Testman will replace interim CEO James Welch, who joined JHT Holdings in September 2007 as interim CEO to guide it through a challenging financial situation resulting from the weak truck manufacturing market. His efforts as CEO culminated with JHT’s successful emergence from Chapter 11. Mr. Welch will become the president and chief executive officer of Dynamex Inc., a provider of delivery and logistics services, effective November 1, 2008.
“We are grateful to James for his exceptional leadership during this important transition for JHT Holdings,” said Testman. “He led us through a successful financial reorganization, and we are excited that he will continue to be a part of the future at JHT by serving on the board of directors.”
“I am proud to have been a part of the outstanding leadership team at JHT Holdings,” said Welch. “I have been impressed with their professionalism, hard work and commitment to excellence. I know the company is in good hands as it begins this new chapter of success.”
About JHT Holdings, Inc.
JHT Holdings, Inc. (JHT), through its operating subsidiaries, including Active Truck Transport, LLC, Automotive Carrier Services Co., LLC and Unimark LLC, is the leading provider of transportation services for manufacturers of medium- to heavy-heavy duty trucks throughout the United States, and on import from Canada and Mexico. Through its predecessors, it has been performing truck transportation services for more than 75 years.
JHT’s operating companies transport approximately 95 percent of the new heavy duty Class 8 trucks and roughly 50 percent of the new medium duty Class 5 thru 7 trucks from the manufacturers’ plant site location to their dealership network. They utilize a staff of approximately 1,300 professionally trained and safety conscious drivers.
This press release may contain forward-looking statements with respect to our financial condition, results of operations and business that are not historical information. As a general matter, forward-looking statements are those focused upon future or anticipated events or trends and expectations and beliefs relating to matters that are not historical in nature. The words “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would” and “could,” often identify forward-looking statements. The company believes there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain, and we may not realize our expectations and our beliefs may not prove correct. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The company’s actual results and future financial condition may differ materially from those described or implied by any such forward-looking statements as a result of many factors that may be outside the company’s control. Such factors include, without limitation: general economic conditions; changes in the trucking business environment; federal regulation of the trucking industry; competition from existing and potential competitors; increases in the costs of borrowings and unavailability of additional debt or equity capital; impact of our substantial indebtedness on our operating income and our ability to grow; the cost of labor; labor disputes; increased insurance costs; the ability to complete the reorganization in a timely manner; rising fuel prices; and other costs and expenses. This list of factors is not intended to be exhaustive.