3 more freight companies file for bankruptcy
20 freight companies have filed for Chapter 11 in Q2
Three more freight companies have filed for bankruptcy in recent weeks, with some truck lenders claiming millions in unsecured funds.
These transportation firms filed for Chapter 11, according to U.S. Bankruptcy Court documents obtained by Equipment Finance News:
- Elma Transport filed on June 27 in the Northern District of Illinois. It listed assets between $1 million and $10 million and liabilities between $500,000 and $1 million;
- MG Logistics filed on July 4 in the Northern District of Illinois. It listed assets and liabilities between $10 million and $50 million; and
- NV Freight filed on June 24 in the Northern District of Illinois. It listed assets and liabilities between $1 million to $10 million.
At least 20 freight companies have filed for Chapter 11 since the start of the second quarter.
Bankruptcies have contributed to an uptick in repossessions of medium-duty trucks and, subsequently, used inventory rose 25.8% year-over-year in May, according to Sandhills Global.
Freight bankruptcies are poised to ramp up even more if the economy spirals into a recession, ACT Research Vice President Steve Tam told EFN, noting that a “more diversified customer base” can help trucking companies avoid financial stress.
Daimler, Volvo among creditors
In the MG Logistics filing, Daimler Truck Financial Services is claiming nearly $2.2 million in unsecured funds. MG Logistics owes truck leasing and financing firm Stoughton Trailers Acceptance Company $4.7 million tied to an undisclosed number of dry box trailers.
The MG case also includes notable lenders Volvo Financial Services and PNC Bank, claiming $250,000 and $120,000 in unsecured funds tied to trucks, respectively.
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