A mega trucking and shipping services company files Chapter 11 to wind down affiliates and restructure its debt.
The trucking, logistic and shipping sector has been facing a recession since March 2022.
Financial problem among these companies forcing multiple to file for bankruptcy.
Great Freight recession is ending more mega trucking companies have been moving for bankruptcy court.
The list of recent trucking and shipping companies filing for bankruptcy includes Miami, Fla based Star Transportation PA and five affiliates that filed for Chapter 11 bankruptcy on Nov 1 to recognize businesses.
Illinois shipping company Mighty Move Transportation which operated with 70 power units and 75 drivers on Oct 24 filed for Chapter 7 liquidation in US Bankruptcy Court for Northern District of Illinois facing two breach of contract lawsuits.
Major trucking and shipping services company KAL Freight on Dec 5 filed for Chapter 11 protection to wind down failing affiliates and restructure its business.
The debtor which is 100% owned by Kalvinder Singh listed $100 million to $500 million in liabilities and assets including about $313 million funded debt.
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The Fontana Calif based transportation and logistic company filed its petition in US Bankruptcy Court for Southern District of Texas in Houston after defaulting on debt owed to about 10 lenders.
Three Canadian entities owned by Big Rig Trailers & Leasing Inc, Big Rig Tires & Service Inc, Big Rig Partz Inc were placed into receivership on June 21 2024 in Canada under Canadian Bankruptcy and Insolvency Act.
Irving, Texas, logistics company Sunset Logistics and affiliates on Oct 3 filed for Chapter 7 bankruptcy to liquidate their asset and cease operation blaming a bad economy, spike costs, less freight rates.
Receiver Grant Thornton on Sept 6 filed for Chapter 15 protection in US.
Bankruptcy Court for Central District of California recognition of receivership as foreign main proceeding.
KAL invested heavily in trucks and trailers because of high demand during the Covid-19 pandemic.
Once pandemic subsided the company was overleveraged and could not meet its financial obligation.
The KAL Partz KAL Tires, KAL Trailers and KAL Aviation ventures were unsuccessful and drain on profits.
KAL largest unsecured creditors consist of CIMC Reefer Trailer Inc owed $12.7 million Shayla S Davis Cain Law Office owed $3 million.
All Solution Insurance Agency owed $1.3 million and Continental Tie The Americas owed $1.1 million.
The debtor founded in 2014 had merged operation with other trucking companies in 2020 became unsuccessful business ventures according to declaration from company chief Restructuring Officer Bradley D Sharp of Development Specialists Inc.
The company which had 800 trucks 800 drivers and over 2,200 trailers on petition date operated its trucking company KAL Freight, trailer distributor and retailer KAL Trailers commercial tire dealer KVL Tires and truck and trailer parts company KAL Partz.
The debtor has not filed a motion seeking debtor in possession financing but it has filed motion for use of its cash collateral and to continue operate under its factoring and security agreement with Triumph Business Capital.