Chapter 11. Service Sector
Burlington Motor Carriers, Inc.
Burlington Motor Carriers, Inc., filed for Chapter 11 protection six years after its LBO because of high overhead and over investment. New owners who purchased the company from bankruptcy right-sized its overhead, invested in state-of-the-art information systems, and strengthened relationships with high-volume customers.
Background
Burlington Motor Carriers was divested by Burlington Northern Railroad and taken private through an LBO in 1989. It filed for bankruptcy in December 1995 and was purchased out of bankruptcy by its current owners in December 1996.
Business Characteristics
Trucking is a highly competitive, cyclical, capital-intensive, low-margin business with few barriers to entry. ...
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