Peace Equipment LLC, a company headquartered in Edcouch, Texas, filed for Chapter 11 bankruptcy protection this week, citing rising operating costs and “reduced income in the trucking industry.”
The company also noted merchant cash advances as being a contributing factor to Peace Equipment’s financial issues, according to court filings.
Peace Equipment filed its Chapter 11 petition, which seeks to reorganize, in the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday.
The company, which has been operating since 2016, has 38 drivers and 27 power units and hauls general freight, fresh produce and refrigerated food throughout the U.S.
In its filing, Peace Equipment lists both its assets and liabilities as between $1 million and $10 million. The petition states the company has up to 49 creditors and maintains that funds will be available for distribution to unsecured creditors once it pays administrative fees.
Chief U.S. Bankruptcy Judge Eduardo V. Rodriguez authorized Peace Equipment’s interim order on Thursday, authorizing the temporary use of its cash collateral to continue operating.
The petition lists 41 creditors, though no amounts were given, including Commercial Credit Group Inc. of Charlotte, North Carolina, and Crestmark Bank of Troy, Michigan, which purport to hold liens or security interests in Peace Equipment.
Reese W. Baker, attorney for Peace Equipment, failed to respond to FreightWaves’ request seeking comment.
Over the past 24 months, Peace Equipment’s trucks have been inspected 37 times and four have been placed out of service for a nearly 11% out-of-service rate. That is significantly lower than the industry’s national average of around 22%, according to the Federal Motor Carrier Safety Administration.
The company’s drivers had been inspected 99 times and four were placed out of service, resulting in a 4% out-of-service rate. The national average for drivers is around 6.6%.
The court also approved Peace Equipment’s interim budget, which includes payroll, fuel and operating expenses.
Rodriquez has set a final hearing for June 5 on the trucking company’s use of cash collateral.
Do you have a news tip to share? Send me an email or message me @cage_writer on Twitter. Your name will not be used without your permission.
Read more articles here:
TQL hits ex-broker with 2nd noncompete lawsuit
Former employees sue NC-based trucking firm over mass firing
Insiders say Flock Freight is a ‘toxic dumpster fire’ with only months of cash left
The post Texas-based trucking company files for Chapter 11 bankruptcy protection appeared first on FreightWaves.
