A Georgia-based carrier which also has deep roots in Massachusetts and which has been in business since 2017 has filed for Chapter 11 bankruptcy protection.
RSTZ Transport Inc., based in Cumming, filed Friday in the U.S. Bankruptcy Court for the Northern District of Georgia.
In its filing, it provides a long list of products it carries, heavily skewed toward edibles: meat, dry bulk commodities, fresh produce, refrigerated food and beverages. It also lists paper products, chemicals and building materials.
RSTZ is owned by Richard W. Bethune, who is also CEO.
Ian Falcone, an attorney representing RSTZ in the bankruptcy, said in an email that the company is continuing to operate during the Chapter 11 process. His client, Falcone said, attributed the bankruptcy to “the longest lasting downturn in trucking in 15 years.”
“We pride ourselves on great customer service and the business relationships that we have nurtured for these years,” Bethune said through Falcone. “We have a great group of drivers that love working here and are loyal and onboard with us through this hardship.”
RSTZ’s page with the Federal Motor Carrier Safety Administration lists its 2023 mileage as 2,435,899 miles. Its vehicle out-of-service percentage for the 24 months just ended was 20.5%, compared to a national average of 22.26%.
The RSTZ page also lists Webster, Massachusetts, as its home base, but the bankruptcy documents all have Cumming as the headquarters. Falcone said RSTZ has a terminal in Webster and that region is where the company began operations. The customer and employee base is in New England, he added.
In its filing from Friday, the carrier lists total liabilities as $4,588,041.34. Total assets are listed as $3,464,462.48.
But secured liabilities are $4,356,747.74. The company lists the total value of its trucks as $2,865,000. It also listed accounts receivable of $559,417.48.
Daimler is a big creditor
Of the main secured creditors, among the largest are truck manufacturer Daimler Truck Finance. There are multiple entries listed for Daimler in the bankruptcy filing, with most of them having debts that are less than the value of the collateral, all of them trucks.
Total secured debt to Daimler North America is about $730,000.
There also are multiple entries for Mitsubishi HC Capital, all of them for trailers. Most of the debts held by Mitsubishi are in excess of the value of the collateral. Total secured debt to Mitsubishi is approximately $462,000.
Factoring company Riviera Finance of Texas is listed as having secured debts with RSTZ of about $559,000 but with collateral of about $579,000, a tight balance that would be expected in the flow of invoices to a factoring company from a carrier.
The 14 trucks in the listing of assets are for models of numerous vintages. Among them are a 2007 Western Star 5700XE with 493,000 miles and a 2023 Peterbilt 579 with 205,000 miles. That is the lowest mileage figure among the fleet , which also includes a 2014 Peterbilt with 820,000 miles. (The FMCSA page for RSTZ lists RSTZ as having 21 power units.)
The bankruptcy filing also lists 21 trailers owned by the company. Falcone said the working number on drivers at present is 18.
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