On February 5, 2008, SIRVA filed for Bankruptcy under a “Pre-packaged” Chapter 11 arrangement. This filing was agreed to by the courts yesterday and this issue is expected to be resolved within 45 days. What this means is that the banks that SIRVA owed money to agreed to forgive over two hundred million dollars in debt in exchange for equity in the company. The Van Lines, vendors and employees will not be affected in a negative way because of this filing and we will continue to conduct business in a normal manner.
SIRVA previously traded on the open market. They are now privately owned by the banks, with JP Morgan being one of the major players. This is a very positive sign for Allied Van Lines and its agents. A major financial player like JP Morgan would not have agreed to this deal if it would have a negative impact on their company.
SIRVA is the parent company of SIRVA Relo Services, Allied Van Lines, Global Van Lines, North American Van Lines and various other entities. Allied Van Lines, Inc. and its agents remain a stable and viable operation within the SIRVA organization and are considered the premier company within the SIRVA organization.
The press has released information that Allied Van Lines filed for Chapter 11 bankruptcy. This is totally untrue and the Van Line is going to demand that the press retract the false information that they released. In the interim, as customers contact us regarding this issue, you can assure them that we and Allied Van Lines have not filed bankruptcy and we are here to conduct business as usual.
Major accounts such as Exxon and the Military are aware of the situation and have stated that this will not affect our business relationships.
SIRVA’s previous financial condition was affecting contract negotiations with both new accounts and agents of our Van Line. With this move, we should be able to go forward and actually be in a better environment within the van line.
Regards,
Keith Verderber,
Vice President Operations
