Citing the severity of the downturn in the housing market, Sirva, Inc., the parent company of Allied Van Lines, one of the nation's largest moving companies, today filed a voluntary, pre-packaged bankrupcty plan in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan.
In the filing, the company said it had reached an agreement with its lenders to restructure its senior secured debt, which will allow it to continue operating during the bankruptcy. It said it had obtained commitments for $150 million in debtor-in-possession financing. The company's outstanding stock, which was delisted from the New York Stock Exchange last year, will be cancelled as a result of the restructuring. The filing affects only the company's U.S. operations.
According to wire service reports, the 60 debtor units of the company list more than 100,000 creditors and assets of $924.5 million against liabilities of $1.23 billion.
Sirva said it expects to complete its restructuring within 60 to 90 days.