Simon Transportation Services Inc. announced Monday that it and its subsidiary, Dick Simon Trucking Inc., met all the required conditions to keep its auto and general liability insurance coverage in place. As the company looks to cut non-profitable ventures it plans to retain its owner-operators.
"We are pleased to have this facet of the bankruptcy addressed and behind us," said Chief Executive Officer Jon Isaacson. "Our customers and drivers can rest assured that our operations are properly insured."
Simon filed a motion with the Bankruptcy Court for the District of Utah in Salt Lake City, for an order approving the bidding and auction procedures and a sale date for a sale of assets; approving the form of bidding, auction and sale notice; and requesting the scheduling of an expedited hearing on the motion for the sale procedures, notice and hearing.
Dick Simon Trucking is a truckload carrier providing nationwide, predominantly temperature-controlled transportation services for major shippers in the food industry.
Included in the filing was a notice of potential bid from Central Freight Lines Inc, a company controlled by Jerry Moyes, for most of Simon's assets. Moyes is Chairman of the Board, President, Chief Executive Officer at Swift Transportation Co.
The company has also requested the authority of the Bankruptcy Court to retain Morgan Keegan & Company Inc. to facilitate a sale of Simon's assets. The motion seeks approval to implement a four-week sale process whereby the company, through Morgan Keegan, will continue to seek additional bids.
Mark Wilkey, Simon's general counsel, said the company is hopeful of keeping owner-operators on board at Simon because they are among the company's most profitable business ventures. "We've found that owner-operators are more reliable and work harder," said Wilkey. "We're trying to flush excess and limit reductions to non-profitable ventures. Right now we have a lot more trucks than freight."