DETROIT -- Performance Transportation Service Inc. filed for Chapter 11 bankruptcy protection on Tuesday, Jan. 24, in U.S. Bankruptcy Court in Buffalo, N.Y., citing falling North American car production.
The company also blamed rising costs stemming from its union contract and diesel fuel.
Performance Transportation Service, the second largest North American transporter of light vehicles, said the bankruptcy petition won't disrupt operations. Its customers include General Motors, Ford Motor Co., DaimlerChrysler AG, Toyota Motor Sales U.S.A. Inc., Honda Motor Co. and other import-brand automakers.
The filing does not apply to its subsidiaries outside of the United States.
In its filing, the company listed assets valued at between $50 million and $100 million. It estimated its debts totaled more than $100 million.
Performance Transportation Service received $10 million in debtor-in-possession financing from a group of lenders, led by the Cayman Islands branch of Credit Suisse Group.
In a prepared statement, CEO Jeffrey Cornish said Chapter 11 offers his company the best chance to make changes and succeed in the industry.
Performance Transportation Service, of Wayne, Mich., has more than 2,000 employees and delivers about 3.8 million new light vehicles annually. It has three business lines: E&L Transport, Hadley Auto Transport and Leaseway Motorcar Transport.
The company filed first-day motions to approve employee compensation and benefit programs.
You may e-mail Greg Migliore at [email protected]