New England Motor Freight voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark. Phoenix Management Services will serve as the company’s restructuring advisor through the bankruptcy process.
NEMF intends to use these proceedings to facilitate an orderly wind-down of its operations. Vincent Colistra, a senior managing director at Phoenix, is serving as the company’s chief restructuring officer in the interim.
“We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant,” said Colistra. “Following two years of losses, and with continuing and unsustainable rises in overhead as well as a severe industry shortage of drivers, we have concluded that the company has no choice but to proceed with an orderly wind-down of operations in a Chapter 11 proceeding.”
Upon the recommendation of its advisors, NEMF has determined that a Chapter 11 proceeding is the best mechanism to maximize the value of its assets for the benefit of its employees and various creditor constituencies.
Founded in 1977 and based in Elizabeth, NJ, New England Motor Freight provides less-than-truckload carrier services in the United States and Canada through its terminals in the Northeast and Mid-Atlantic.