Investor group to acquire Greatwide Logistics Services

Greatwide Logistics Services—a Dallas TX-based national provider of non-asset-based transportation and third-party logistics services—intends to enter into an agreement to be acquired by an investor group comprised of its first lien secured lenders, including affiliates of Centerbridge Capital Partners and the D. E. Shaw group.

The company believes the transaction will allow Greatwide to complete its financial restructuring expeditiously while providing an efficient way to address its capital structure needs with no disruption to its operations or customer service. Greatwide expects the sale to reduce its debt and interest burden, enhance its competitiveness, and position the company for continued growth and profitability.

To implement the transaction, Greatwide will sell the company under Section 363 of the United States Bankruptcy Code. Other parties will have an opportunity to submit higher and better offers to purchase the company under this court-supervised process, and Greatwide anticipates the sale transaction will be completed early in 2009.

In conjunction with this process, certain members of Greatwide’s existing first lien lender group will provide $73.6 million in new "debtor in possession" financing to support the business through the 363 sale process.

Upon receiving the necessary approvals, the financing facility will be used to fund ongoing operations. In addition, the company will continue to meet all of its obligations to its customers, employees, independent contractors, agents, and capacity providers.

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