Comcar Industries files bankruptcy to sell various operating companies

By Caroline Salls

Pittsburgh, May 18 – Comcar Industries, Inc. filed Chapter 11 bankruptcy Saturday in the U.S. Bankruptcy Court for the District of Delaware to facilitate the sale of its various operating companies, according to a company news release.

Comcar said CT Transportation LLC will be sold to PS Logistics, LLC, CTL Transportation LLC will be sold to Service Transport, Inc., and MCT Transportation LLC will be sold to White Willow Holdings.

PS Logistics has agreed to pay $6.81 million for the CT assets, plus a driver premium and a sellers’ proration amount, minus a buyer proration amount, the market value of any abandoned vehicles and cure costs capped at $95,000, for a transaction valued in excess of $8 million.

Service Transport has agreed to pay $9 million for the CTL assets, and White Willow has agreed to pay $2.25 million for the MCT assets.

The company has also entered into a letter of intent for the sale of its CCC and CTTS Repair units.

“Our decision to file Chapter 11 was to better enable us to find homes for our customers, people and assets,” the Comcar senior management team said in the news release.

“Prior to this decision, we worked diligently to find a solution that would reduce our debt, enhance our liquidity and best position all Comcar holdings for the future. After evaluating options to address our capital structure and conducting extensive negotiations, we determined that a sale of all companies would be the best path forward to maximize their value.”

During the planned process, the company said it expects to conduct business as usual on a day-to-day basis. Procedural activities will be managed by Comcar and overseen by the bankruptcy court.

In conjunction with the bankruptcy filing, Comcar obtained a commitment for $13.67 million in new-money debtor-in-possession financing. The financing package also includes a roll-up of $1.34 million in pre-bankruptcy term loan obligations.

U.S. Bank NA is the DIP financing agent.

The facility will mature on Aug. 19.

Interest will accrue at the Base rate plus 850 basis points or Eurodollar plus 950 bps.

The company is seeking interim access to $12.91 million of the new-money financing.

According to court documents, Comcar has $50 million to $100 million in both assets and debt.

The company’s largest unsecured creditors are Hilda, Jorge and Claudio Montes, with a $100 million litigation claim; Rachel Crust, with a $12 million litigation claim; Violene Ferdinand, with a $4 million litigation claim; Mack Financial Services of Philadelphia, with a $2.2 million lease claim; Navistar Leasing Co. of Chicago, with a $2.01 million lease claim; and Michael Kifer of Double Oak, Tex., with a $1.25 million litigation claim.

The company is represented by DLA, Bluejay Advisors and FTI Consulting.

Auburndale, Fla.-based Comcar Industries, through its subsidiaries, provides truck transportation and logistics services in the United States. The Chapter 11 case number is 20-11120.

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