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Good-bye Allied...

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February 05, 2008 – Comments (1)

This one caught me by surprise...  Allied Van Lines has filed for bankrupcy protection.  They have their home relocate program and they got hit with have agreements to buy the homes and then having to sell them at a loss...

I suppose if you were familiar with the industry you'd have seen this one coming, but I sure didn't.  I'd have expected them to see a slow down due to less moving, but not to get themselves about $276 million further in the hole then they have assets.

The article says the banks will be reducing the debt by $200 million and taking a 75% stake of the company and existing shares will be cancelled...  I would so not want to be a shareholder... 

1 Comments – Post Your Own

#1) On February 05, 2008 at 11:55 PM, abitare (35.58) wrote:

Good post. Allied is not the last BK coming in the next couple of years, unfortunately.

I will be happy if there is no panic or bank runs or the dollar  does not collapse:

 

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