Published: August 17, 1984Branch Industries said it and its Branch Motor Express Company unit had filed a petition under Chapter 11 of the Federal Bankruptcy Code for a liquidation of assets and termination of business operations. Branch said that despite certain cost savings, including an employee wage-reduction plan instituted in January, it was in default under loan agreements covering about $23 million of debt to its major lenders.
The bankruptcy filing was made after Branch was unable to negotiate new financing satisfactory to the major lenders that have a secured interest in substantially all of its assets and properties. In view of the amount of debt, Branch said it was improbable that proceeds from its liquidation would be available as distribution to its shareholders.