URT Holdings' bid was selected following a competitive sale process. The bid was valued at approximately $39,988,976, comprised of cash, assumed liabilities and $16,000,000 in the form of an offset against the obligations of the Company to Medley.
The Company recently faced liquidity challenges and a potentially significant adverse judgment resulting from an unfavorable court ruling. Management determined a bankruptcy process was the best course to restructure the Company's balance sheet and secure its financial position for the future, and to maximize value for stakeholders.
The sale effectuates the necessary changes to allow the Company to deleverage its balance sheet and to continue to operate under the ownership of URT Holdings, including continuing to serve customers, vendors, and employees.
"I am grateful for the patience, dedication and commitment of our employees, vendors, and customers in assisting the Company through this sale process, and look forward to maintaining these valuable relationships for a long time to come," said Jerry Corcoran, the Company's CEO.
URT Holdings has retained all the senior management of the Company following the sale, and services to customers have and will continue uninterrupted by the process.
Court filings and other information related to the restructuring proceedings are available at a website administered by the Company's claims agent, Rust Consulting/Omni Bankruptcy, at http://omnimgt.com/unitedroadtowing.
About United Road Towing, Inc.
The Company, headquartered in Mokena, Illinois, is the leader in towing, recovery, impound, and vehicle management solutions in both the private and public sector. Through a portfolio of local and regional brands operating across 10 different regions in eight different states, the Company dispatches approximately 500,000 tows, manages over 200,000 impounds and sells over 38,000 vehicles annually across the United States.
[1] URT Holdings, Inc.; City Towing Inc.; URS West, Inc.; Bill & Wags, Inc.; Export Enterprises of Massachusetts, Inc.; Pat's Towing, Inc.; Keystone Towing, Inc.; Ross Baker Towing, Inc.; URT Texas, Inc.; Mart-Caudle Corporation; Signature Towing, Inc.; WHW Transport, Inc.; URS Southeast, Inc.; URS Northeast, Inc.; URS Southwest, Inc.; Fast Towing, Inc.; E & R Towing and Garage, Inc.; Sunrise Towing, Inc.; Ken Lehman Enterprises Inc.; United Road Towing South Florida, Inc.; Rapid Recovery Incorporated; United Road Towing Services, Inc.; Arri Brothers, Inc.; Rancho Del Oro Companies, Inc.; CSCBD, Inc.; URS Leasing, Inc.; UR VMS, LLC; UR Vehicle Management Solutions, Inc.
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SOURCE: United Road Towing