On Monday, August 5, 2019, Teamster local union leaders held a tele-conference and approved sending the Last, Best and Final Offer (LBFO) from Jack Cooper to members for a vote. Later that same day, Teamster Carhaul Division leaders and staff conducted a national tele-forum town hall meeting to review the LBFO and related Restructuring Term Sheet. Over 1,000 Jack Cooper members participated in the 75-minute call. Details and the calendar for the ratification process will be set in the coming week.
Today, Tuesday, August 6, 2019, Jack Cooper filed for Chapter 11 bankruptcy which enables it to continue to operate as a going concern until a “reorganization plan” is ratified by members and approved by the bankruptcy court. This is not a surprise to us based on our due diligence since we were first contacted by Jack Cooper earlier this summer. We have been preparing for this filing and have our bankruptcy counsel and experts already engaged to monitor the developments during the bankruptcy.
As was explained on the Monday evening tele-conference with members, we believe this bankruptcy filing is the only opportunity for Jack Cooper to restructure itself – reducing its debt by half, getting new money in the business and limiting its liabilities going forward. If the restructuring is ratified by the members and approved by the bankruptcy court over the next 60 to 90 days, Jack Cooper will emerge as a new company, with new owners, new board of directors and a much healthier balance sheet.
To read a PDF of this update, Click Here.
We will continue to provide updates at www.teamster.org/JackCooper