Performance Transportation Services, a Wayne, Mich., auto transporter, said it will file for chapter 11 bankruptcy as part of a $67 million deal to sell nearly all of its assets to Allied Systems Holdings.
"This transaction represents the best result for our customers, employees and stakeholders," Jeffrey Cornish, PTS' chief executive officer, in a Thursday statement. "Our goal is to preserve as many jobs as possible and maximize the value of our estate for our creditors.”
PTS said it has entered a non-binding letter of intent with Allied that stipulates, in addition to the sale of PTS’ assets, that Allied assume an unspecified amount of PTS debt, according to a PTS statement issued Thursday.
PTS said it expects the sale to close within 45 to 60 days.
Meanwhile, the company said it would file within a week a motion with the U.S. Bankruptcy Court to create a court-supervised bidding process that would allow other firms the chance to top Allied’s offer.
Allied, Decatur, Ga., and PTS are both are part of private equity firm Yucaipa American Alliance.