Chapter 11 Used to Downsize Company


Annual Sales



Transit Group, Inc. (Priority Transportation), Orlando FL


Dry van and refrigerated truck load carrier. $300 million in Sales. $150 million in Bank Debt.

  • High cost of acquiring 13 companies caused a drain on liquidity.
  • Projected cost savings did not materialize as recession caused drop in revenue and profitability.
  • Senior management was not analyzing operations or reacting to the market during roll-up of purchased companies.
  • Company undercapitalized and losing money on a daily basis.
  • Poor economy, poor integration of acquired companies and increased insurance premiums due to poor safety record forced company into bankruptcy.
  • High dead head percent and underutilization of equipment was causing a drain.


  • MorrisAnderson engaged as Financial and Reorganization Advisor in a Chapter 11 proceeding.
  • 13 roll-up companies were still operating independently with no consistency or oversight.
  • Equipment was not being maintained and not being replaced.
  • Sales and marketing were operating independently of operating strategy.
  • No safety strategy.


  • Replaced senior management with operations focused management team.
  • Instituted new sales initiatives to align with company goals.
  • Divested two rolled up companies that were not strategic fits.
  • Instituted company-wide safety program that decreased losses by 30%.
  • Required quarterly on-site preventative maintenance for all equipment.
  • Began equipment replacement program to decrease average age of tractors from 3.5 years to 2 years.
  • Returned 25% of all equipment to leasing company.
  • Facilitated successful Plan of Reorganization from a Chapter 11.