Sirva Bankruptcy

Posted by David Piotrowski

On February 5th, I discussed Allied Van Lines (and Sirva’s) bankruptcy in this post. Today I read an article that discusses how some of Sirva’s creditors are expressing their opposition to the Chapter 11 loan.

Sirva’s unsecured creditors called the moving company’s proposed $150 million bankruptcy loan “unnecessary” and said it shouldn’t be approved. These unsecured creditors feel it gives the secured creditors inappropriate leverage.

Sirva, the parent of Allied Van Lines, will ask the U.S. Bankruptcy Court in Manhattan to sign off on the loan at a final hearing Thursday. The court has already given the company the go-ahead to borrow up to $110 million on the loan pending the final hearing.

It will be intersting to see how the Sirva Bankruptcy pans out. Allied Van Lines is a large household goods moving company, and I wonder if Sirva’s bankruptcy is one of more to come from other large moving companies.

Will the housing downturn also have a major effect on small and medium sized moving companies? What should moving companies be doing now to protect themselves against periodic economic downturns?
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Update May 12, 2008: Sirva to Become a Private Company

Hiring a Moving Company

Posted by David Piotrowski

This view offers some helpful advice and information on what to look for and inquire about when hiring a moving company. The video was created by ServiceMagic, a company that provides moving leads.



The video discuss proper packing methods, brokers, moving company estimates, valuation coverage, and more.

Allied Van Lines — Bankrupt!

Posted by David Piotrowski

Allied Van Lines, one of the largest moving companies in the country, has filed for bankruptcy. The company, which is based in Westmont, Ill., listed assets of $924 million and debts of $1.2 billion. The company has more than 100,000 creditors. Under the company’s “prepackaged” bankruptcy plan, Sirva’s (Allied’s parent company) lenders will trade a portion of the debt they’re owed for a 75 percent stake in the reorganized company. Existing shares in the company will be canceled.

Sirva has lined up a $150 million loan to fund its Chapter 11 case and an additional $215 million in financing for when it exits bankruptcy protection. Under the deal, the company’s bankruptcy lenders, led by JPMorgan Chase Bank, will receive an additional 25 percent stake in the reorganized company.

The company said it intends to stay in business during its bankruptcy case and expects to exit Chapter 11 in two to three months.

For additional information, click here. It will be interesting to see the outcome and how Allied Van Lines is able to pull out of their bankruptcy.
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Update May 12, 2008: Sirva to Become a Private Company

Moving Checklist

Posted by David Piotrowski

Anyone who has moved in the past knows that moving involves a lot of work and some stress, even for those who have moved frequently in the past. The level of stress is often compounded for those who have moved infrequently. A successful interstate move with less stress will involve preparation, planning, and a good checklist to refer to as the moving date nears. The following is meant to be a non-exhaustive moving checklist for people who are planning an upcoming move.

As Soon As You Know You Will Be Moving, You Should…

• Get estimates from multiple moving companies. Be sure you are comparing apples to apples by asking for a detailed explanation in writing on what is and is not included in the estimate;
• Find out if the estimate is binding or non-binding;
• Order moving boxes and packing supplies as soon as possible;
• Compare your moving quotes. If all the estimates are much higher than you were expecting, consider moving yourself or not moving all your items. You may want to move only those items that you must keep while selling the rest in a yardsale or giving them away to friends, family, or charity;
• If you plan to move yourself instead of using a professional mover, get quotes from Uhaul and other similar companies. You will still need moving boxes and packing supplies.
• Keep all your moving quotes with your personal notes in an easily-accessible file or folder for easy retrieval at a later date;
• Read this household goods blog to learn about moving regulations and the household goods moving industry.

At Least One Month Prior to Your Moving Day, You Should…

• Decide if you will use a professional mover or move yourself;
• If you decide to hire a professional mover, you should make your reservation and get your final estimate in writing (whether it be a binding or a non-binding estimate);
• Contact your friends, relatives, subscriptions, credit cards, and anyone else who sends you mail and provide them with your new address;
• If your new home will not be ready by the time you need to vacate your old home, make arrangements with your moving company to temporarily store your belongings (an additional fee will likely apply), and find short-term housing for yourself;
• Gather copies of your health and dental records and look for new medical professionals in the area where you will be living;
• Use up perishable food items and minimize your purchases;
• Have school records and transcripts transferred;
• Contact your utility companies and schedule a disconnection at your old home and a connection for your new home;
• Begin packing items, but leave the fragile items for your movers to pack if you are hiring a professional moving company;
• Research rules and regulations about pets and plants in your new location. Some states and other local governments may have special rules on importing pets and plants;
• Contact your insurance companies for your automobile, homeowners, and others and let them know you will be moving;
• Gather all your important paperwork such as deeds, bills, credit cards, checkbooks, and wills, and move these items yourself;
• Secure all items of an extraordinary value such as antiques, paintings, and jewelry, and consider moving these items yourself.

One to Two Weeks Prior to Moving, You Shoud…

• Go to your local post office and fill out a change of address. You may also use the post office’s online form (note that the post office may charge a fee to change your address online);
• If you have borrowed any items from friends or local resources such as a library, make sure all those items are returned to their rightful owner;
• Cancel your newspaper service and consider subscribing to the local newspaper in your new city or town;
• Transfer your bank accounts and any safe deposit boxes;
• Pick up any dry cleaning or orders you may have at local stores;
• Confirm what time your movers will be arriving on the moving day.

On Your Moving Day, You Should…

• Watch your movers closely to make sure they are packing the appropriate items;
• Make sure the moving foreman understands your wishes;
• Read your Bill of Lading, Inventory List, Order for Service, and other moving documents carefully and ask if you don’t understand something;
• Sign all copies of moving documents;
• If you don’t understand something, ask your foreman. If the foreman is not helpful, call the moving company (their phone number should be on the Bill of Lading);
• Be sure to store your moving documents in a safe place and move these items to your new home yourself.

On Delivery Day, You Shoud…

• Check the items being delivered against the inventory list;
• Note on the inventory any damaged or missing items and then sign the inventory list for your mover;
• You will likely be required to pay your mover for the balance prior to unloading the goods (100% of the binding estimate or up to 110% of the non-binding estimate);
• Have cash on hand. Many movers will not accept checks or credit cards at delivery;
• If you have any damages or missing items, contact the moving company as soon as possible, but no later than 9 months after delivery.

Special Deals…

Define: Intrastate and Interstate Moves

Posted by David Piotrowski

A common question people have when planning a move is determining the type of move they will be making and what it means to them in terms of what rules and regulations will apply. There are two main types of moves that occur on a daily basis in the United States: intrastate moves and interstate moves.

Intrastate Moves

Intrastate moves are moves that do not go across state lines, but rather the origin and the destination are within a single state. The routes on intrastate moves will never cross state lines. An example of an intrastate move would be a move from San Francisco, CA to Los Angeles, where the truck never leaves California to complete the move. Intrastate moves are handled by state agencies rather than federal law, and are not the main topic of this blog.

Interstate Moves

An interstate move is a move that crosses state lines, or has both the origin and the destination in the same state, but the route that the truck takes crosses state lines. An example of an interstate move is a move from California to Nevada. Interstate moves are governed by federal law. Interstate moves are the main topic of this blog and most of the posts on this site refer to interstate moves. For more information on interstate moves, please click here.

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