BeavEx Holding Corporation, et al.

BeavEx Holding Corporation, et al.

Case Number: 19-10316 (LSS)

District of Delaware
BeavEx: Frequently Asked Questions
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What did BeavEx announce?

BeavEx announced that it has reached an agreement to sell the majority of its assets, including its Guardian Medical Logistics business, to certain U.S. Last Mile affiliates of TFI International Inc. (“TFI International”), a North American leader in the transportation and logistics industry. As part of this agreement, TFI International would also assume certain of the Company’s liabilities.

Why did BeavEx enter into an agreement to sell the majority of its assets to certain U.S. Last Mile affiliates of TFI International Inc.?

After thoughtful consideration, BeavEx determined that a sale is the best path to maximize the value of its leading delivery and logistics solutions business, as well as its medical and laboratory support business, for the benefit of customers across the United States and its other stakeholders.

Why did BeavEx file for Chapter 11?

BeavEx filed for Chapter 11 to accomplish the sale in an efficient manner, through a Bankruptcy Court-supervised process designed to achieve the highest or otherwise best offer, or offers, for the Company’s assets. Subject to Court approval, certain U.S. Last Mile affiliates of TFI International Inc. (“TFI International”) will serve as the “stalking horse” bidder, and other prospective buyers will have the opportunity to bid on the same or other assets.

It is advantageous to enter the Chapter 11 process with an agreed offer from TFI International, which intends, at close, to migrate the majority of BeavEx’s customers and all of Guardian Medical Logistics’ customers onto its platform, assume the contracts of BeavEx and GML independent contractor couriers and service providers who currently service those designated customers, and hire a substantial number of BeavEx and GML employees.

Will the day-to-day operations of BeavEx and Guardian Medical Logistics be affected?

The Company is continuing to operate its BeavEx and GML businesses in the ordinary course during the Chapter 11 proceedings.

The Company has received Court approval of a series of customary motions enabling BeavEx and GML to continue operating as usual and uphold commitments to their valued customers, employees, and other stakeholders during the process. Approval of these “first day” motions helps to facilitate a smooth transition into Chapter 11.

Does BeavEx have sufficient cash to continue operating while in Chapter 11?

BeavEx has obtained debtor-in-possession financing that, combined with cash generated by the business, will provide funds to support ongoing operations during the process.

Will the Company continue to pay employees and provide benefits during the Chapter 11 process?

Current employees will be paid their wages/salaries and receive their benefits as usual, without interruption, during the process.

How does the Chapter 11 filing/sale process impact customers of BeavEx and Guardian Medical Logistics?

BeavEx and GML will remain focused on successfully serving their customers, providing them with unparalleled delivery and logistics solutions, as well as medical and laboratory support services, that meet their time-critical needs. To maintain customer satisfaction, loyalty, and goodwill, the Company has received Court approval to maintain and honor its customer programs related to rebates, refunds, and early payment discounts in the ordinary course.

Upon closing of the sale to certain U.S. Last Mile affiliates of TFI International Inc. (“TFI International”), the Company will work to migrate the majority of BeavEx’s customers and all of GML’s customers onto TFI International’s platform quickly and with as little disruption as possible. TFI International has indicated that it intends to assume the contracts of BeavEx and GML independent contractor couriers and service providers who service these customer accounts and hire a substantial number of BeavEx and GML employees, further ensuring a seamless transition. Should a bidder other than TFI International ultimately acquire the Company’s assets, the Company would similarly work with that buyer to help ensure continuity for customers.

How does the Chapter 11 filing/sale process impact the independent contractors who service customers of BeavEx and Guardian Medical Logistics?

The Company’s dedicated, strategically located team of independent contractor couriers and service providers enables BeavEx and GML to fulfill the time-critical, often same-day, needs of their customers. Independent contractors who support the Company by continuing to provide services on existing terms will receive settlement for contracted services in the ordinary course during the Chapter 11.

To maintain the high level of service that BeavEx and GML customers have come to expect, TFI International has indicated that it plans to assume the contracts of BeavEx and GML independent contractor couriers and service providers who currently service those customer accounts that TFI International would take on as part of the transaction. Should another bidder emerge as the acquirer of the assets, the Company would likewise work with that buyer to help ensure continuity for customers and independent contractors.

How will the sale process work?

The Company received approval of bid procedures that designate certain U.S. Last Mile affiliates of TFI International Inc. (“TFI International”) as the “stalking horse” bidder and provide other prospective buyers with the opportunity to bid on the same or other assets, with the goal of maximizing value. Bids are due by April 8, 2019, with an auction (if required) scheduled for April 10 and a sale hearing set for April 16.

Where can I go for more information and updates?

For more information about BeavEx’s Chapter 11 proceeding, including access to Court documents, please visit www.cases.stretto.com/beavex.