ELIZABETH, N.J.--(BUSINESS WIRE)--New England Motor Freight, Inc. (the "Company" or "NEMF") today announced that the Company and ten related entities have 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 on February 11, 2019. NEMF intends to use these proceedings to facilitate an orderly wind-down of its operations.
Vincent Colistra, a Senior Managing Director with Phoenix Management Services, LLC (“Phoenix”), and Chief Restructuring Officer (“CRO”) for the Company, said, “We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant. 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, the Company 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.
Phoenix is serving as the Company’s restructuring advisor through Vincent Colistra as the CRO. Additional information is available by calling Mr. Colistra at (908) 965-0100, ext. 51220.
About New England Motor Freight
New England Motor Freight, Inc. provides less-than-truckload (LTL) carrier services in the United States and Canada. Founded in 1977, the company is based in Elizabeth, New Jersey, and has terminals in the Northeast and Mid-Atlantic.