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Feb 1, 2000 - 11:56 AM AmeriServe Food Distribution, Nation's Second-Largest, Files for Bankruptcy Protection The Associated Press DALLAS (AP) - AmeriServe Food Distribution Inc., the nation's second-largest food service distributor, has filed for Chapter 11 bankruptcy protection. The company, based in the Dallas suburb of Addison, distributes meat, produce, beverages and other supplies to more than 30 fast-food and casual-dining chains with about 36,000 restaurants, including Burger King, Pizza Hut, Taco Bell, T.G.I. Friday's and Red Lobster. -snip-

-- Dee (T1Colt556@aol.com), February 01, 2000

Answers

BTW, Chapter 11 would be reorganization, not liquidation. Wonder what the contributing factors were (like shipping problems??)?

-- Brooks (brooksbie@hotmail.com), February 01, 2000.

Right, Brooks.

Under CH 11, a bankrupt company can continue to operate as "Debtor in possesion". A panel of the 10 largest creditors is formed to oversee ongoing operations and development of a plan to return to solvency. During this period, the bankrupt company is not required to make payments on debts incurred prior to filling CH 11. However, raising capital and getting favorable terms is difficult; not sucha problem in a rising healthy economy but potentially serious in a decline and or inflationary period.

-- Bill P (porterwn@one.net), February 01, 2000.

Second largest food distributor filing for protection is important news, thanks Dee.

-- Guy Daley (guydaley@bwn.net), February 01, 2000.

Very interesting. Hopefully more details will emerge.

If this came about because of systemic weakness in this company, what of other distribution companies. Did the recent rise in diesel prices push them over the edge?

It would seems to me that in principle, there should be ample work for restaurant food distributers-- given the generally rising number of people who 'eat out'.

On the other hand, bad management can sink the unsinkable.

-- tim phronesia (phronesia@webtv.net), February 01, 2000.

Another major infrastructure crack.

How many cracks in the framework does it take to look like a pattern ?

How many observations does it take to get the attention of the Brainstream Media ?

-- snooze button (alarmclock_2000@yahoo.com), February 01, 2000.

2nd largest food distributer, and not one peep from the Nightly NEWs.

Amazing

-- (karlacalif@aol.com), February 01, 2000.