Lila Kate Trucking LLC, a Roanoke, Alabama-based carrier, filed for Chapter 11 bankruptcy protection on Friday.
The company is seeking to reorganize under Subchapter V of Chapter 11, a provision designed to streamline restructuring for small businesses. The filing was made in the U.S. Bankruptcy Court for the Middle District of Alabama, according to court records.
Assets and liabilities
In its voluntary petition, Lila Kate Trucking estimated both its assets and liabilities at between $1 million and $10 million. The company reported having between one and 49 creditors.
The debtor indicated that after administrative expenses are paid, no funds would be available for distribution to unsecured creditors.
The petition was signed by Matthew Brown, listed as managing member, and filed by Montgomery-based attorney Paul D. Esco.
Company says operations will continue
Brown told FreightWaves the carrier intends to continue operating during the restructuring process.
“We will absolutely continue operations. We will come out of this stronger than ever,” Brown said. “We strategically utilized the timing of the filing with the rebounding freight market. We will continue to offer our customers, as well as all our valued employees, the top tier service we are known for.”
Subchapter V allows qualifying small businesses to restructure debts while maintaining control of day-to-day operations.
Fleet profile
According to the Federal Motor Carrier Safety Administration’s SAFER database, Lila Kate Trucking holds an active USDOT number and is an authorized carrier.
The company operates 12 power units and employs 15 drivers, providing interstate for-hire service. Its cargo profile includes general freight, metal sheets and coils, building materials and large machinery.
The company reported 159,000 vehicle miles traveled in 2023, according to its most recent MCS-150 filing.
FMCSA inspection data show 59 inspections over the past 24 months, with a vehicle out-of-service rate of 44.8%, above the national average of 22.26% during the same period.
The carrier reported no crashes in the most recent 24-month period.
Filing deficiencies noted
On Monday, the bankruptcy court issued a notice of deficiency outlining several required filings, including payment of the $1,738 Chapter 11 filing fee, submission of schedules and a statement of financial affairs, and a list of the 20 largest unsecured creditors.
The court said that failure to timely submit required documents could result in dismissal of the case.
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