Contrans slows down payments to unitholders

WOODSTOCK, Ont. — In a bid to conserve cash in this depressed freight market, Contrans Income Fund announced it has temporarily suspended distribution payments to unitholders.

The company, whose combined trucking assets make it one of the largest for-hire carriers in Canada, also said that its board will recommend to unitholders that future payments be made quarterly instead of monthly.

"The board and management remain confident in Contrans’ ability to compete, to succeed and to continue to create long-term value for its unitholders," the firm stated.

Unlike most former trucking income trusts like TransForce, ATS Andlauer, and the Mullen Group, Contrans has not shed its income trust status or chosen to go private.

CEO Stan Dunford told Today’s Trucking last year that he and his unit holders (he’s the largest investor) trust the carrier’s business model and he does not see any compelling reason to follow suit with the aforementioned carriers at this time.

 


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