Trailmobile Trailer files under Chapter 11

Trailmobile Canada Ltd (TCL) has announced that its United States affiliate, Trailmobile Trailer LLC (TTLLC), has filed for Chapter 11 under the US Bankruptcy Code. Trailmobile Trailer Canada Ltd (TTCL), a wholly owned subsidiary of TTLLC, TCL, and Trailmobile Parts & Service Corporation are not included in any Chapter 11 filings.

As before, TCL will continue to operate as a separate legal entity, with a separate and distinct financing arrangement from all other affiliated Trailmobile companies.

TCL's current trade receivable from affiliates is $2.4 million, with $82,000 and $2.3 million due from TTLLC and TTCL, respectively. Of the amount owed by TTLLC, $63,000 will be charged to fiscal 2001's results and the residual, $19,000, will be charged to TCL's first-quarter results for fiscal 2002. All monetary figures are expressed in Canadian dollars.