Dowdy Inc., a privately controlled trucking company in Batesville,
AR, announced April 17, it has filed a voluntary petition for
reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The company's 81 owner-operators, as well as its 275 employees,
are being paid as usual, according to Ronnie Dowdy, president,
CEO and founder.
never missed a beat," Dowdy told Land Line. Additionally,
he says the company has no plans to cut owner-operators and
is protecting escrow accounts from being part of the bankruptcy.
has filed a number of motions with the bankruptcy court to protect
the company's 275 employees, as well as preserve the company's
insurance programs, obtain interim financing and retain the
legal and professional services for the reorganization. Employee
401k accounts are protected by law and not subject to the bankruptcy
filing. During the reorganization, the company's vendors, suppliers
and other business partners will be paid under normal terms
for goods and services provided during the reorganization.
his company intends to complete and emerge from the reorganization
through continuing efforts to reduce expense levels and improve
efficiencies. "I don't like where we're at now," he
said. "But we'll come out of this and be around for a long
decision to seek reorganization was based on a combination of
industry, economic and operation factors. A slowing economy,
ongoing downward pressure on rates and freight volumes, a significant
drop in used equipment values, and rising insurance and claims
costs have resulted in losses and negative cash flows. Although
current fuel prices were not a factor in the bankruptcy decision,
Dowdy says several months of extremely high fuel prices did
add to other factors in his decision.
efforts at expense reduction, through the sale of assets, closure
of facilities and reductions in manpower levels over the past
18 months, plus shrinking opportunities at refinancing because
virtually all assets are already pledged as collateral, have
not provided the liquidity to continue operating outside bankruptcy
decided that even after significant and successful efforts over
several months to reduce expenses, we have been unable to overcome
the impact of difficult industry conditions and an economy in
recession," said Dowdy. "This is a difficult decision
in the life of our company, and we regret the negative effect
the filing will have on some of our vendors and other business
partners, however, we are convinced that the protection gives
us the best opportunity to be successful on a go-forward basis."
the trucking company in 1983 to haul temperature-controlled
freight. The company started with three trucks, and now has
more than 300 trucks listed in the company's data filed with
--by Rene Tankersley