Product details

Founded in 1924, Laidlaw had run solid for almost 75 years. But in 1999, the atmosphere changed for the Canadian corporation. Under an aggressive acquisition strategy that consumed the 1990s, along with growth in revenue came a heavy burden of long term debt surpassing $3.1 billion. What had once been a profitable company reporting Net Income of $346 million in 1998 had experienced a reversal of fortune. For fiscal year ending August of 1999, Laidlaw''s Net Income plunged to ($1.1) billion and for the nine months ending May of 2000, Net Income fell further to ($1.9) billion. As a short-term measure, management successfully negotiated with bondholders to receive sufficient consents to permit certain subsidiaries to enter into secured banking agreements. Announced on October 25, 2000 in Dallas, Texas, the line of credit only provides Laidlaw and Greyhound with a short-term solution to their financial problems. For the company to survive, it will need to implement a solid re-structuring plan.