Management & Operations

Laidlaw undergoes financial restructuring

Posted on February 1, 2001

High fuel prices and a tight labor market were a couple of the factors that brought Laidlaw Inc. to the brink of financial disaster and a suspension from the New York Stock Exchange.“While the company’s core passenger services performed reasonably well in the face of difficult operating conditions … the company’s future was imperiled by the severe reduction in value of our other principal assents,” said Chairman Peter Widdrington and President John Grainger in a letter to shareholders.Facing a debt of more than $3 billion, Laidlaw planned on selling such assets as Safety-Kleen Corp. and healthcare businesses American Medical Response Inc. and EmCare Holdings Inc. That plan was never executed because Safety-Kleen filed for bankruptcy and the value of the other two companies declined.“These reductions resulted in write-downs which eliminated the book value of shareholders’ equity, put Laidlaw in violation of its debt covenants and left the company with an unmanageable debt load,” the letter read.Laidlaw is currently undergoing a restructuring program, the details of which can not be disclosed due to government regulations, Grainger said. The company has consolidated liquidity in excess of $250 million as a result of cash-on-hand and the availability of $100 million under a bridge facility with the Canadian Imperial Bank of Commerce and more than $50 million under a $125 million facility established for Greyhound Lines Inc.“This working capital infusion enables all Laidlaw’s operating companies to continue to execute their business plans, effectively isolated from the process of restructuring Laidlaw’s balance sheet,” said Widdrington and Grainger.For fiscal year 2000, the company reported a loss of $2.24 billion on sales of $2.93 billion, compared with a loss of $1.12 billion on sales of $2.25 billion the year before.While Laidlaw remedies its financial situation, there will not be any service interruptions for its affiliate companies, including Greyhound, said T.A.G. Watson, Laidlaw’s vice president of communications.“We have an objective of keeping the companies active and whole and keeping them supplied with cash for their needs,” he said. “We are progressing.”The NYSE suspended trading in Laidlaw’s common shares and certain exchangeable notes after it fell below the continued list criterion that requires companies to maintain a minimum share price of $1 during a 30-day trading period. Laidlaw last traded at less than 10 cents a share. The company can still be traded on the Toronto Stock Exchange and over the counter in the U.S.

View comments or post a comment on this story. (0 Comments)

More News

New York MTA names new chief transformation officer

Anthony McCord is a senior executive with over 25 years of experience in industrial services and infrastructure roles around the world.

Voters continue support for public transportation funding

Houston Metro and Cincinnati lead the trend with overwhelming success for ballot measures supporting growth and infrastructure.

San Diego MTS rail, bus ridership sees boost in Q1

he spike has been led by the Trolley, which has posted six straight months of year-over-year gains.

COTA names sr. director of development

Kimberly Sharp has been deputy director, planning and development for the City of Westerville since 2013.

Keolis Group names new Executive Chairman

From 2005 to 2013, Patrick Jeantet worked at Keolis as Deputy CEO, International, then as CEO, France.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation