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July 13, 2001 2:16 PM, EDT

Burlington Motor Carriers in Bankruptcy

Burlington Motor Carriers confirmed Friday that it has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code as a result of its inability to restructure long-term debt with equipment lenders.

It is the second time in six years that the Daleville, Ind.-based truckload carrier has filed Chaper 11 bankruptcy, which allows troubled companies to put off debt until new terms can be negoiated with creditors.

Chairman Thomas F. Grojean Sr., in a statement, said the company has in place a new $50 million post-petition credit line with its primary lender, Foothill Capital Corp., which he said is "more than adequate to support continued profitable operations while the company reorganizes."

Burlington and its subsidiary Jolliff Transportation operate 2,000 trucks in the U.S., Mexico and Canada. The company had revenue of $250 million in 2000.

BMC is ranked number No. 61 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data.

For more information on Burlington Motor Carriers, see the July 16 print edition of Transport Topics. Subscribe today.

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