Gainey Transportation files Chapter 11; owner vows drivers will be paid
Citing the international financial crisis as the major contributing factor, Harvey Gainey, owner and president of Gainey Transportation out of Michigan, has filed for Chapter 11 bankruptcy protection.
Gainey, who started the business in 1984, told Reed Black on Land Line Now that the firm is continuing to operate and that company drivers and owner-operators will be paid.
“We only have 40 owner-operators in our entire system, but they are all included in the cash order (filed in the Federal Bankruptcy Court in Michigan) so employees will be paid, benefits will continue, owner-operators will be paid, and people we broker freight to will be paid,” Gainey said Wednesday afternoon, Oct. 15.
According to documents filed in the U.S. Bankruptcy Court of Western Michigan, the company has about 2,300 employees nationwide, with about 1,900 of them identified as truck drivers. The company uses about 5,000 trucks nationwide in its freight transportation operations.
The company posted the following statement from Gainey on its Web site:
“As we noted in our Sept. 30 announcement, the nation’s financial crisis has compelled our lenders, including Wachovia Bank, to make ill-advised decisions based on their own cash constraints. Those constraints have placed Gainey Corporation and its operating companies in a very difficult situation,” said Harvey Gainey, CEO.
“Our exhaustive efforts to negotiate a constructive agreement with our lending group have been met with a series of increasingly aggressive actions by these lenders.
“Faced with recent actions by Wachovia Bank, the Company has decided that the only reasonable course that will allow us to serve our customers and preserve jobs is a Chapter 11 reorganization filing. Our sound business fundamentals – which include positive cash flow and operating income – will continue to ensure our uninterrupted operations, including paying all suppliers, delivering all freight and meeting our payroll.”
Gainey told Land Line Now that his company and the Wachovia officials simply don’t agree on the amount of money that Gainey Corp. owes.
“But we feel very confident of our position,” Gainey said. “Three or four years ago this whole thing would have been restructured (in) six months, and we’d be right on down the road. Times are not normal in the financial market right now.”
– By Coral Beach, staff editor
[email protected]
http://www.landlinemag.com/todays_ne.../101508-01.htm
Harvey Gainey is:
1.) A liar.
2.) A cheat.
and 3.) A cheat.
If you work for them you'd better get out soon. He'll screw everybody he can while he's on the way down. Why not, he's screwed plenty of drivers while he was riding high.
