DANBURY, CT--(Marketwired - Jun 21, 2016) - Integrated Freight Corporation (OTC PINK: IFCR) announced today an update on outstanding litigation and creditors at its parent level. This report does not update on its subsidiaries, which are not subject to the Company's ongoing restructuring effort.
Management notes the following relating to its parent company only as presented in its FYE 2015 financials:
- There is approximately $10,000,000 total debt at the parent level.
- Included in the $10,000,000 is $8,700,000 of judgment creditor claims. Of these:
- 57% is held by an individual
- 23% is held by a fund, or its principals, and IFCR management legacy note holders.
- The remaining indebtedness relates to:
- 7.7% is current litigation that is in various forms of settlement and considered working litigation.
- 5.6% relates to fees or accounts payable in the normal course with no corresponding litigation.
In 2015, the IFCR Board of Directors approved the creation of classes of preferred stock that would be utilized to resolve a majority of the above mentioned claims. Based on current discussions regarding Items 2a and 2b above, management anticipates a significant write down of these claims. The Company may also issue a portion of its new class of preferred as an inducement in these settlements.
With regard to Items 3a and 3b above, these settlement discussions will continue or will be paid.
The Company was recently made aware of a judgment claim in excess of $8,000,000. Management has held weekly discussions with counsel for the creditor and believes the claim will be settled, in terms, prior to June 2016 month end.
About Integrated Freight Corporation
Integrated Freight Corporation (OTC PINK: IFCR) provides long-haul, regional and local motor freight service. For its customers, the Company provides dry van and hazardous waste truckload services in well-established traffic lanes in the Upper Midwest, Texas, California and along the Atlantic seaboard. For its shareholders, Integrated Freight acquires operating motor freight companies that build, maintain and deliver shareholder value. The Company's corporate mission is to be the best niche motor carrier in North America.
Forward Looking Statements
This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. The Company's expectations, among other things, are dependent upon economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of more capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's 10-Ks and 10-Qs on file with the Securities and Exchange Commission.
We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.