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Giant Relocation Company Files for Bankruptcy


hausdok
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CHICAGO, February 5, 2008

SIRVA, Inc. (SIRV.PK), a global relocation services provider, today announced that it reached an agreement with its lenders to restructure its senior secured debt through a voluntary, pre-packaged Chapter 11 reorganization, which will allow it to finalize the restructuring of its debt while continuing to operate its business and serve its customers. SIRVA’s operations outside of the U.S. are not part of the Chapter 11 filing.

SIRVA, Inc. is a leading provider of relocation solutions to a well-established and diverse customer base around the world. The Company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services, including home inspections.

SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's well-recognized brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement.

SIRVA said it is taking this action to free up its operations from a heavy debt service burden and to strengthen its balance sheet so that it is better positioned to weather the continuing weak U.S. housing market. The restructuring is embodied in a plan of reorganization which received overwhelming support from the Company’s lenders. The plan will reduce SIRVA’s outstanding bank debt by approximately $200 million and annual cash interest expense by approximately $54 million.

“SIRVA undertook a comprehensive strategic review to evaluate all the options for restructuring our balance sheet and, after careful consideration, determined that a prepackaged Chapter 11 filing provided the most efficient way forward for the Company,â€

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