Reuters Business Report Consolidated: No Value for Shareholders Tuesday September 3, 4:16 pm ET
VANCOUVER, Washington (Reuters) - Consolidated Freightways Inc (NasdaqNM:CFWYE - News) on Tuesday said claims by creditors were likely to consume all of big truckers' assets, leaving nothing of value for shareholders of the company filing for bankruptcy. ADVERTISEMENT
Consolidated, the No. 3 shared-loads trucker in the country, is ending operations and has begun laying off 15,500 workers as part of a bankruptcy petition scheduled to be filed in a California court on Tuesday.
"It is unlikely that (Consolidated) will be able to fully satisfy the claims of creditors from the proceeds of any sale or liquidation. Because of this, there will likely be no money available for distribution to stockholders," Consolidated said in a news release.
A spokesman for Vancouver, Washington-based Consolidated, which has been struggling financially and said it was unable to secure adequate financing to sustain its operations, declined to detail the 73-year-old company's debts, assets and creditors.