The first half of October has been a busy period for chapter 11 filings related to transportation, with a survey of filings revealing small companies to ones with several dozen trucks.
Based on previous searches for chapter 11 filings in the PACER database, five in two weeks seems a higher rate than others in recent memory, though there is no data to support that.
Here’s a summary of the transportation companies FreightWaves found in just the first two weeks of this month.
GEC Transport Solutions
GEC Transport Solutions is based in Pharr, Texas, where its website says it was founded in 2015. Pharr is a stone’s throw from the U.S.-Mexico border, with Reynosa, Mexico sitting right across the Rio Grande.
Its SAFER site with FMCSA says it has 70 power units.
GEC filed for chapter 11 protection earlier this month with the southern district of Texas. In its filing, it checked the box that said “after any administrative expenses are paid, no funds will be available for distribution to unsecured creditors.”
GEC listed both total assets and liabilities as between $1,000,001 to $10-million.
GEC’s two-year out of service (OOS) rate for vehicles (13%) and drivers (3.3%) were both below the national averages of 22.26% and 6.67%, respectively.
Its two largest unsecured liabilities are loans from Alan McDaniel of Texas, one for about $559,000 and the other for about $493,000.
In an email to FreightWaves, GEC’s bankruptcy attorney Susan Tran said the company is continuing to operate.
Propel Trucking
Propel Trucking filed in the Eastern District of Arkansas. It is based in Russellville, Arkansas.
The filing was under Propel Trucking, doing business as Propel Logistics and Propel Xpress.
Its number of creditors is one to 49. Its estimated assets are zero to $50,000 and its estimated liabilities are $1,000,001 to $10 million.
Propel’s largest creditor is BMO Bank NA, with an unsecured claim of $$693,928.46. BMO’s name shows up in several of the bankruptcies, owing to its role as one of the largest lenders to the trucking sector in North America.
It also has debt of approximately $231,000 to Wells Fargo Equipment Finance and $276,300 to Wintrust Specialty Finance.
Propel’s FMCSA data lists 32 power units. Its inspection out of service percentage in the last two years is 32%, compared to the national average of 22.26%. Its driver OOS percentage is 15.7%, compared to 6.67%.
An email to the bankruptcy attorney listed on Propel’s filing had not been responded to by publication time.
R&R Transport & Logistics
R&R Transport & Logistics is a Houston-based company that describes itself as a carrier/broker. It is not to be confused with a much larger Pittsburgh-based carrier that also is named R&R.
Its FMCSA data shows it as having 20 power units.
Its OOS results in the last two years shows it at 18.2%, which is less than the national average during that time of 22.26%.
Its cash on hand was listed at approximately $35,000. Accounts receivable are about $266,000 and with machinery assets like power units it listed total assets of approximately $1.12 million.
Total liabilities are approximately $1.49 million.
The largest unsecured lender is Simmons Bank of Houston, with a liability of just under $330,000.
An email to the bankruptcy attorney listed on R&R’s filing had not been responded to by publication time.
G1 Transport
G1 Transport, a small carrier that lists only five power units in its FMCSA data, filed for chapter 11 protection in the northern district of Georgia.
Its estimated assets are listed as $50,001-$100,000, with liabilities of $500,001 to $1 million.
Befitting a company that small, its seven listed creditors are hand-written in the bankruptcy filing. No attorney is listed.
Its inspection data with FMCSA lists 9 inspections in the last two years that resulted in 9 OOS orders. The driver OOS rate was 16.7% in 12 inspections, more than the 6.67% national average.
Styx Logistics
Styx Logistics is an Amazon Delivery Service Partner (DSP) based in Reno, Nevada. Its FMCSA data reports it has 30 power units though those presumably be smaller delivery vans rather than class 8 tractors.
Its estimated number of creditors is less than 50, and its estimated assets are between $50,000 and $100,000. Its estimated liabilities were reported as between $1 million plus one to $10 million.
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