JHT Holdings, Inc. Announces Plans for Financial Reorganization Under a Voluntary, Pre-Negotiated Chapter 11 Filing

Company and lenders have great confidence in JHT’s future success; Lenders providing $25 million in Debtor-in-Possession financing.

KENOSHA, Wis., June 25 /PRNewswire/ — JHT Holdings, Inc. (JHT), a holding company whose subsidiaries provide heavy- and medium-duty truck transportation services, yesterday announced it reached agreement with its lenders to restructure its balance sheet through a voluntary, pre-negotiated Chapter 11 reorganization.

“Yesterday’s action is simply a strategic financial decision on the part of JHT Holdings that will not impact the day-to-day operations of our subsidiary companies,” said James Welch, chief executive officer of JHT. “This approach is in the best interest of employees, customers and suppliers because it will enable us to dedicate more of our capital to business operations. Once the financial restructuring efforts are complete, we will be in an even better position to serve customers and capitalize on new opportunities within the industry.”

JHT is taking this action to strengthen its balance sheet so it is better positioned to weather the current weak truck manufacturing market and manage the cycles inherent in the transportation industry. JHT is in a strong position, because unlike many transportation companies reorganizing under Chapter 11, its fundamental business plan is sound and it has long-term business relationships with its customers.

“JHT and its lenders have great confidence in the future success of the Company and the fundamental strength of our business model,” said Welch. “Our lenders have demonstrated this confidence through strong, enthusiastic support of the reorganization plan and their commitment to provide both short- and long-term financing.”

JHT has already reached agreement with a significant majority of its lenders on the reorganization plan. Under the proposed plan, JHT’s current lenders will convert a portion of their debt to equity and become the owners of the reorganized JHT. Under the proposed plan outstanding bank debt will be reduced by over 40%, and annual cash interest expense will decrease by over 50%. To supplement its liquidity position, the Company has arranged for debtor-in-possession (“DIP”) financing of up to $25 million, from members of its current lender group. The reorganization plan contemplates another $35 million in additional financing upon emergence from Chapter 11 to provide for the long-term success of the company.

“The Company and lenders are in agreement with our strategy and anticipate emerging very quickly from Chapter 11,” said Welch. Because the Chapter 11 filing is voluntary and pre-negotiated, JHT anticipates emerging from Chapter 11 much faster than most companies.

“We want to emphasize our intention to continue normal day-to-day operations throughout the U.S. and Canada,” said Welch. “Our financing commitment provides reassurance that we will meet or exceed our customers’ expectations for exceptional, uninterrupted service.”

The Company and its domestic subsidiaries filed their voluntary Chapter 11 petitions in U.S. Bankruptcy Court for the District of Delaware. The cases have been consolidated for administrative purposes under case number 08-11267.

About JHT Holdings, Inc.

JHT Holdings, Inc. (JHT), through its operating subsidiaries, including Active Truck Transport, LLC, Automotive Carrier Services Co. LLC and Unimark LLC, is the leading provider of transportation services for manufacturers of medium- to heavy-heavy duty trucks throughout the United States, and on import from Canada and Mexico. Through its predecessors, it has been performing truck transportation services for more than 75 years.

JHT’s operating companies transport approximately 95% of the new heavy duty Class 8 trucks and roughly 50% of the new medium duty Class 5 thru 7 trucks from the manufacturers’ plant site location to their dealership network. They utilize a staff of approximately 1,300 professionally trained and safety conscious drivers.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to our financial condition, results of operations and business that is not historical information. As a general matter, forward-looking statements are those focused upon future or anticipated events or trends and expectations and beliefs relating to matters that are not historical in nature. The words “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would” and “could,” often identify forward-looking statements. The Company believes there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain, and we may not realize our expectations and our beliefs may not prove correct. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The Company’s actual results and future financial condition may differ materially from those described or implied by any such forward-looking statements as a result of many factors that may be outside the Company’s control. Such factors include, without limitation: general economic conditions; changes in the trucking business environment; federal regulation of the trucking industry; competition from existing and potential competitors; increases in the costs of borrowings and unavailability of additional debt or equity capital; impact of our substantial indebtedness on our operating income and our ability to grow; the cost of labor; labor disputes; increased insurance costs; the ability to complete the reorganization in a timely manner; rising fuel prices; and other costs and expenses. This list of factors is not intended to be exhaustive.

For More Information, Contact:

James Madlom
Mueller Communications, Inc.
(414) 390-5500

First Call Analyst:
FCMN Contact:

Source: JHT Holdings, Inc.

CONTACT: James Madlom of Mueller Communications, Inc., +1-414-390-5500,
for JHT Holdings, Inc.