New England Motor Freight sale procedures approved; auction May 14

By Caroline Salls

Pittsburgh, April 8 – New England Motor Freight, Inc. obtained court approval of the bid procedures for the proposed sale of substantially all of debtors Eastern Freight Ways, Inc. and Carrier Industries, Inc.’s assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of New Jersey.

Although the debtors have also begun an asset liquidation process, the company said both Eastern and Carrier continue to operate their respective businesses, and the debtors have determined that a going-concern sale of those assets was the best way to maximize their value.

Under the procedures, bids are due by 4 p.m. ET on May 9, and an auction will be held on May 14, if necessary.

The sale hearing is scheduled for May 16.

If a stalking horse bidder is selected, the company would pay that bidder a 3% break-up fee and a $75,000 expense reimbursement if it is not ultimately the winning bidder.

The deadline for submitting a potential stalking horse bid is April 12.

If a stalking horse bid is obtained, competing bids must exceed that bid by at least the amount of the break-up fee, expense reimbursement and a $100,000 overbid amount.

Elizabeth, N.J.-based New England Motor Freight provides less-than-truckload carrier services in the United States and Canada. The company filed bankruptcy on Feb. 11 under Chapter 11 case number 19-12809.

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