BRUCE R. SMITH LIMITED

October 09, 2009 11:49 ET

BRUCE R. SMITH LIMITED: Press Release

SIMCOE, ONTARIO--(Marketwire - Oct. 9, 2009) - BRUCE R. SMITH LIMITED ("Bruce R. Smith") has received protection from its creditors under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an Order of the Ontario Superior Court of Justice (Commercial List) issued October 8, 2009, which allows it time to restructure its business and affairs. KPMG Inc. is the Court appointed Monitor. Hamilton law firm, Scarfone Hawkins LLP, is representing Bruce R. Smith in its restructuring efforts.

Bruce R. Smith began its trucking operations in 1947 with one truck hauling from the farming communities of Norfolk County to destinations in southwestern Ontario. Today, Bruce R. Smith has a fleet of approximately two hundred and fifty tractors and one thousand, one hundred trailers, and operates from six locations throughout southern Ontario and one in Montreal, Quebec, with customers throughout the provinces of Ontario and Quebec, and the United States. Bruce R. Smith currently employs approximately three hundred and twenty-five employees.

Bruce R. Smith is well known in the trucking industry and has specialized equipment, including trailers for refrigerated and heated product transportation, multi-axel vans for heavy commodities, multi-axel flat decks for the steel industry, and fifty-three foot quad vans and tandem trailers for the beverage industry. Because of Bruce R. Smith's expertise and reputation in many specialized sectors, its customers include businesses in the steel, packaging, manufactured goods, beverage, food stuffs and refrigerated products industries.

However, as a result of the severe North American economic recession, and particularly its impact on the North American automotive/manufacturing sectors, Bruce R. Smith's revenues have declined significantly, and the corporation now has more equipment and equipment carrying costs than can be supported by its decreased revenue base. While its revenue base is showing early signs of recovery and Bruce R. Smith has taken every possible step to address the necessary restructuring issues outside of formal legal proceedings, it has determined that it is in the best interests of its shareholders, employees and creditors to seek protection pursuant to the CCAA in order to restructure to bring its short to mid term cost structure in line with a lower revenue model.

Bruce R Smith has had preliminary discussions with its major secured creditors and is pleased to advise that they are supportive of the application, and have expressed a willingness to support a restructuring. Accordingly, it will be business as usual during the restructuring process as far as Bruce R. Smith's customers are concerned, and the corporation intends to try and preserve as much of its employment base as possible. It is Bruce R. Smith's intent to emerge from CCAA protection with stronger, more efficient trucking operations.

Further information and a copy of the Order can be accessed on the Monitor's website at: www.kpmg.ca/BruceRSmith and further inquiries may be directed to the Monitor, Attention: Brad Newton at bradnewton@kpmg.ca, or to Bruce R. Smith's solicitors, Attention: Joseph Speranzini at speranzini@shlaw.ca.

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