MILFORD, Ohio, Jan. 2 /PRNewswire/ -- The Board of Directors of Intrenet,
Inc. (Nasdaq: INETE), announced today that it and its subsidiary trucking
companies will cease operations, effective immediately. INET Logistics will
continue to operate pending its sale. After a careful and thorough review of
the Company's business, industry dynamics, and all available options, it was
determined that issues related to fuel prices, driver retention and the
unwillingness of many customers to accept higher rates would preclude the
Company from achieving operational profitability in the foreseeable future.
In addition, the Company noted that it lacked adequate capital to execute its
business plan.
Effective immediately, Intrenet will lay off most of its 1,700 employees,
keeping a minimal staff to provide an orderly wind-down of operations and
direct the liquidation of assets. The Company's 1,100 owner-operators will
also be impacted. All loads in transit as of January 2 will be delivered, but
no further loads will be accepted.
Intrenet Chief Executive Officer John P. Chandler stated, "I would like to
express my thanks to our employees, agents and owner-operators who have worked
tirelessly towards our common goals. Their collective character and efforts
are greatly appreciated and I wish all of these individuals the best in their
future endeavors."
The Company said that it is working in cooperation with its lender, which
holds a first lien on substantially all of the Company's property, to effect
an orderly liquidation. The Company also stated that it could not currently
predict the extent to which its remaining assets would be sufficient to
satisfy the claims of unsecured creditors, but that it currently expected that
no assets would be available for distribution to shareholders.
Mr. Chandler further stated that the previously announced accounting
issues relating to its subsidiary Advanced Distribution System, Inc. had
little impact on the decision to suspend operations and liquidate.
Intrenet subsidiaries include Roadrunner Trucking, Eck Miller
Transportation, Advanced Distribution System, Roadrunner Distribution
Services, and INET Logistics.
For further information, please contact: investors, Matt Clawson, or
media, Len Hall, both of Allen & Caron Inc, 949-474-4300, for Intrenet, Inc.;
or Thomas J. Bell, Chief Financial Officer of Intrenet, Inc., 513-576-6666.
SOURCE Intrenet, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/131658.html or fax,
800-758-5804, ext. 131658
CONTACT:
investors, Matt Clawson, or media, Len Hall,
both of Allen & Caron Inc, 949-474-4300, for Intrenet, Inc.; or
Thomas J. Bell, Chief Financial Officer of Intrenet, Inc.,
513-576-6666
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