PrimeEFS & Shypdirect Account for 87% of Consolidated Liabilities
JUPITER, FL / ACCESSWIRE / August 25, 2021 / Transportation and Logistics Systems, Inc. (OTC PINK:TLSS), ("TLSS", or the "Company"), a full-service logistics and transportation provider, today announced that on August 24, 2021, two of its wholly-owned subsidiaries, Prime EFS, LLC ("PrimeEFS") and Shypdirect LLC ("Shypdirect"), both New Jersey limited liability companies no longer engaged in operations (together, the "Assignors"), have each executed and filed an Assignment for the Benefit of Creditors ("ABC") in the Superior Court of New Jersey, in Bergen County (the "Assignments"). Terri Jane Freedman of Chiesa Shahinian & Giantomasi PC ("Freedman") has been appointed as the Assignee.
According to John Mercadante, CEO of TLSS, "Of the approximately $15 million of liabilities reported on the consolidated balance sheets as of June 30, 2021, approximately $13 million, or 87%, are directly attributable to these two entities, so the ABCs are another step in the restructuring efforts that commenced in early 2020."
By operation of these Assignments, any and all of the assets of the Assignors are transferred to the Assignee for the purposes of sale and/or liquidation. The Assignee will market the assets in a manner to maximize value for the creditors and stakeholders of the Assignors, and in her discretion, will effectuate a sale of the Assignors' assets subject to court approval, including consideration of any higher and better offers. To the extent there are net proceeds from the sale(s) of the assets, such net proceeds would be paid to the creditors in accordance with the priorities established by law.
About Transportation and Logistics Systems, Inc.
TLSS, through its wholly-owned operating subsidiaries, Shyp FX, Inc. and Cougar Express, Inc., operates as a full-service logistics and transportation company.
For more information, visit the Company's website, http://www.tlss-inc.com/.
Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "intend," "plan," "goal," "seek," "strategy," "future," "likely," "believes," "estimates," "projects," "forecasts," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers' cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry's and customers' evolving demands; our history of losses, deficiency in working capital and a stockholders' deficit and our ability to achieve sustained profitability; material weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our substantial indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.
These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.
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SOURCE: Transportation & Logistics Systems