A 25-year-old Georgia-based trucking company, which has 60 drivers and 33 power units, recently filed for bankruptcy protection.
Newsome Trucking of Jasper, Georgia, filed its petition Monday in the U.S. Bankruptcy Court for the Northern District of Georgia.
In its Chapter 11 petition, Newsome Trucking listed its assets and liabilities as between $1 million and $10 million. The company, which seeks to reorganize, states that it has up to 49 creditors and maintains that funds will be available for unsecured creditors once it pays administrative fees.
In its bare-bones petition, the company listed The McPherson Companies Inc. of Trussville, Alabama; Commercial Credit Group of Charlotte, North Carolina; and AutoZone, as creditors, although no amounts were given.
Newsome’s trucks had been inspected 11 times and one had been placed out of service in a 24-month period, resulting in a 9.1% out-of-service rate. This is significantly lower than the industry’s national average of around 22.3%, according to the Federal Motor Carrier Safety Administration’s SAFER website.
Newsome’s drivers had been inspected 29 times over the same 24-month period with no drivers being placed out of service. The national average is around 6.7%, according to FMCSA data. In the past two years, the company’s trucks had been involved in six towaways.
The bankruptcy petition lists Kevin Newsome as president of Newsome Trucking, which hauls general freight. He also owns KRN Logistics, also of Jasper, which has 15 power units and 15 truck drivers. The logistics arm is not part of the Chapter 11 bankruptcy filing.
Newsome’s attorney, Paul Marr, did not respond to FreightWaves’ request for comment as of publication.
According to FMCSA data, Newsome Trucking’s common carrier authority was granted in April 2012 and its contract carrier authority was granted in September 1999. The company’s Bodily Injury Property Damage Coverage (BIPD) insurance is slated to be canceled on Feb. 29.
A creditor’s meeting is scheduled for Feb. 23.
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