Quality Distribution Inc has completed a financial restructuring through an equity infusion and bond exchange, resulting in about $70 million of reduced operating company indebtedness and a long-term modification to its credit agreement effective through Dec 31, 2005. In connection with the restructuring, Apollo Management LP, the company's controlling shareholder, has invested approximately $40 million in preferred stock.
Several existing holders of Quality Distribution's senior subordinated notes and floating interest rate subordinated term securities have exchanged their debt securities for a combination of debt and equity securities. The credit agreement amendment provides for less-restrictive loan covenants beginning March 31, 2002, through final maturity.