PST Vans Inc. has emerged from Chapter 11 bankruptcy, less than eight months after the Salt Lake truckload dry van carrier filed for protection, company officials have announced.
The company filed for bankruptcy protection in June to restructure a debt of more than $11.5 million incurred by the company's previous management through a leveraged buyout in 1988. Under the reorganization plan, The Bank of New York will receive 49 percent ownership interest in PST and forgive the outstanding debt.Chief executive officer Kenneth Norton retains control of the company with 51 percent of its stock. The bank also has agreed to extend a $9.5 million line of credit to PST.
"We're probably the largest employer in the state to file Chapter 11 bankruptcy and come back out," Norton said. The company employs about 200 people at its office in West Valley City and 500 truck drivers and mechanics. The company also has employees through-out the country.
A Chapter 11 filing frees a company from the threat of creditors' lawsuits while it reorganizes its finances.
"PST is extremely gratified by the unanimous acceptance of its plan by every creditor class. The support from creditors, customers, venders and employees has made it possible for PST to achieve its best operating results in recent history. We look forward to an outstanding 1994," Norton said.
The company has increased efficiency by centralizing its operations. PST Vans Inc. operates more than 700 company-owned conventional tractors, 325 independent contractors and 2,100 53-foot dry van trailers.
In March, PST will acquire 300 new Freightliner conventional tractors which will result in a tractor fleet consisting of 1992 or newer models. PST also has arranged for delivery of 200 new Stoughton 53-foot trailers in March and an additional 400 Stoughton trailers sometime this year.