Sale of Trucker and Out of Court Wind Down of Estate

Tango Transport (Gorman Group)

Shreveport, Louisiana

Challenge

Regional long-haul trucker covering 15 states. $200 million revenue. $20 million debt.


  • Company was losing $8 million annually, secured lender was demanding an exit and tractor lessors had started repossessing vehicles
  • Company’s service area was greater than it could cost effectively service
  • Tractor and driver utilization were very poor
  • Tractor maintenance and uptime were serious problems
  • Pricing was inadequate and below market
  • Cost structure was too high
  • Immediate Chapter 11 seemed to be the only option

Solution

  • MA hired as CRO
  • Quickly develop turnaround plan to reduce service area, cut fleet size/return leased assets, increase prices, cut costs and refinance out secured lender
  • Develop cash forecast to provide partial payments to lessors to give turnaround plan time to work
  • Get secured lender and major lessors buy-in

Results

  • Secured lender refinanced
  • One-third of leased assets returned
  • Company was sold without need for bankruptcy filing
  • New secured lender was fully paid with significant recovery by unsecured creditors

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both… Read More

Daniel Wiggins

Daniel Wiggins is a Managing Director at MorrisAnderson with notable turnaround and transaction experience. In building value for his clients Daniel focuses on enhancing stakeholder relationships that optimize business continuity and he frequently leads negotiations with clients’ key suppliers, customers, and lenders – particularly during restructuring initiatives. An additional focus of Daniel’s engagements is mentoring… Read More