20 more freight carriers go bankrupt

Twenty more freight carriers recently filed for bankruptcy as trucking industry challenges persist, with major equipment lenders owed millions.

According to U.S. Bankruptcy Court documents obtained by Equipment Finance News, investment firm Paladin Capital filed for Chapter 11 bankruptcy on Jan. 26 in the Middle District of Tennessee, which resulted in bankruptcies of affiliated logistics firms including:

Central Logistics;
Dolphin Line;
Freight Contracting Services;
Magnum Express;
Magnum Logistics;
Quickway Carriers;
Quickway Logistics;
Quickway Transportation;
Robert Bearden;
SG Express;
SNL Distribution Services; and
Volunteer Express.

Paladin listed between $10 million and $50 million in assets and liabilities ranging between $100 million and $500 million. The company and its subsidiaries combined employ more than 900 people.

In a declaration submitted to the court, Paladin Capital Chief Executive Brian Hall attributed the company’s downfall to the “great freight recession,” citing reduced demand, lower spot rates and higher operational costs.

Paladin owes $20 million each to its three primary equipment lenders: BMO, Bank of America and First Horizon Bank. The lenders provided lease financing to subsidiary Capital City Leasing, which then provided the trucks to the affiliated carriers. Capital City Leasing filed for Chapter 11, as well.

Paladin also listed Truist as a major creditor and owes the bank $14.6 million. Truist controls the debtor’s cash and lends against accounts receivable and owned equipment.

Paladin on Jan. 22 proposed a deal to the four major creditors in a list-ditch effort to avoid bankruptcy, according to the declaration. The company requested drawing from its Truist line of credit to pay the three primary equipment lenders a combined $210,000 per week. BMO rejected the deal.

Other unsecured creditors in the Chapter 11 filing include OEM captives Navistar Financial and Daimler Truck Financial Services, which are owed roughly $2.3 million and $290,000, respectively.

Paladin will attempt to sell its assets while under Chapter 11 protection.

Distress mounts

These carriers also filed for bankruptcy since EFN last reported on the matter on Jan. 23.

Ceesay’s Trucking & Logistics filed Jan. 27 in the Northern District of Georgia;
AM Carrier filed Jan. 28 in the Western District of Washington;
SB Transportation Service filed Feb. 6 in the Middle District of Florida;
Global Logistic and Fulfillment filed Feb. 10 in the District of Nevada;
Mast Trucking filed Feb. 10 in the District of Kansas;
Bee & G Enterprises filed Feb. 14 in the Western District of Washington;
Standard Freight Logistics filed Feb. 23 in the Middle District of Florida; and
Lila Kate Trucking filed Feb. 27 in the Middle District of Alabama.

The 20 filings in January are the highest monthly total since EFN began tracking freight bankruptcies in April 2025. The previous high was 12 in October.

Volvo Financial Services is among the creditors affected by the February filings, with an unsecured claim of roughly $540,000 tied to four trucks financed to Mast Trucking. In the Bee & G filing, Heritage Bank has an unsecured claim of more than $600,000 tied to an undisclosed number of trucks and trailers.

The fourth annual Equipment Finance Connect at the C. Baldwin in Houston May 18-19 is the only event that brings together the equipment industry to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.