After filing Chapter 11 bankruptcy in March, Matlack Systems Inc. is closing its doors. The company, one of the nation's largest transporters for the chemical industry, announced Aug. 6 it is selling off its assets and will cease operations by Aug. 31, 2001.

Company officials won't comment on the future of its 974 drivers, including 180 leased owner-operators. Neither the office of CEO Michael B. Kinnard or Chris Gallowitz, vice president of operations, would respond to questions from Land Line

According to a press release filed with the Securities Exchange Commission, Matlack has signed definitive agreements with Quality Distribution Inc., Superior Bulk Logistics Inc. and other parties to sell certain terminals, equipment and other assets to these companies. The purchasers also will assume certain property and equipment leases, and has indicated an intent to continue to service the customers at the respective terminals.

The combined value of these transactions is approximately $22 million and the assets being sold are responsible for more than half of the company's volume of business. These transactions are subject to the approval of the bankruptcy court.

Also, the company has signed letters of intent to sell other terminals and additional trailers and tractors to four unrelated parties. The company's remaining terminals are in the process of being closed with all operations expected to cease by Aug. 31, 2001. All remaining assets will be disposed of or sold.

The net proceeds received from the asset sales will be applied to outstanding debts of the company. The company does not anticipate that the combined net proceeds from asset sales will be sufficient to allow any distribution to stockholders.