Dive Brief:
- Commodity Transporters has initiated a Chapter 11 bankruptcy process, rather than a Chapter 7 liquidation, as it seeks to preserve its rolling stock.
- The Merced County, California business has over $1 million in assets and liabilities, according to its petition, but it’s filing as a small business debtor, meaning key debts are limited to $3.424 million.
- The company posted 33 power units and drivers as of mid-January, according to the Federal Motor Carrier Safety Administration’s Safety and Fitness Electronic Records System.
Dive Insight:
The business faced an imminent repossession threat of most of its rolling stock and needs more time to file its remaining bankruptcy materials, according to a June 29 filing by its attorney.
“The Debtor’s financial affairs are extremely complicated and involve business operations in several states” with complex financial arrangements and separate security interests on each item, attorney David Johnston said in the legal filing.
The flatbed and specialized carrier operates across Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Washington and Wyoming, according to its website.
The carrier’s fleet hauls general freight, metal, lumber materials and other building and large-sized items, according to the SAFER database.
Commodity Transporters was formed in the Golden State in 2013, according to a state business database.
Other California carriers have also reported setbacks with their finances recently, such as NTL Truck Line, which shuttered in September. And owner-operators in particular have also been undergoing bankruptcy proceedings throughout this year.
