Transit Group files for bankruptcy

ATLANTA (Jan. 2, 2001) — Transit Group, one of the largest truckload carriers in the United States, has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

Excluded from the filing is the company’s Land Transportation subsidiary, which governs relationships with trucking agents and brokers.

“While Transit has sound operating businesses, the company has a capital structure which it cannot sustain,” said Philip A. Belyew, president and CEO. “In addition, our industry has been significantly impacted by the overall economic decline and escalating insurance premiums. While we have made good progress in reducing our overhead costs over the past year, we have determined the best means to secure a strong future for Transit is through a Chapter 11 financial reorganization.”

Belyew said the company is taking steps to ensure that its employees, drivers, owner-operators, agents, customers, and ongoing trade suppliers are not affected by our financial reorganization. “We will continue to serve our customers as usual, while we complete the necessary changes to establish a sustainable capital structure,” he said.

Transit Group, headquartered in Atlanta, has operations in 48 states.