Gainey Transportation Bankruptcy

Gainey Corp. Issues Statement Regarding Chapter 11 Reorganization Filing
GRAND RAPIDS, Mich., Oct. 14, 2008 – Gainey Corporation today issued the following statement:
“As we noted in our Sept. 30 announcement, the nation’s financial crisis has compelled our lenders, including Wachovia Bank, to make ill-advised decisions based on their own cash constraints. Those constraints have placed Gainey Corporation and its operating companies in a very difficult situation,” said Harvey Gainey, CEO.
“Our exhaustive efforts to negotiate a constructive agreement with our lending group have been met with a series of increasingly aggressive actions by these lenders.
“Faced with recent actions by Wachovia Bank, the Company has decided that the only reasonable course that will allow us to serve our customers and preserve jobs is a Chapter 11 reorganization filing. Our sound business fundamentals – which include positive cash flow and operating income – will continue to ensure our uninterrupted operations, including paying all suppliers, delivering all freight and meeting our payroll.”