Alabama family-owned carrier files for Chapter 11 bankruptcy

Lila Kate Trucking LLC, a Roanoke, Alabama-based carrier, filed for Chapter 11 bankruptcy extortion connected Friday.

The institution is seeking to reorganize nether Subchapter V of Chapter 11, a proviso designed to streamline restructuring for tiny businesses. The filing was made successful the U.S. Bankruptcy Court for the Middle District of Alabama, according to tribunal records.

In its voluntary petition, Lila Kate Trucking estimated some its assets and liabilities astatine betwixt $1 cardinal and $10 million. The institution reported having betwixt 1 and 49 creditors.

The debtor indicated that aft administrative expenses are paid, nary funds would beryllium disposable for organisation to unsecured creditors.

The petition was signed by Matthew Brown, listed arsenic managing member, and filed by Montgomery-based lawyer Paul D. Esco.

Brown told FreightWaves the bearer intends to proceed operating during the restructuring process.

“We volition perfectly proceed operations. We volition travel retired of this stronger than ever,” Brown said. “We strategically utilized the timing of the filing with the rebounding freight market. We volition proceed to connection our customers, arsenic good arsenic each our valued employees, the apical tier work we are known for.”

Subchapter V allows qualifying tiny businesses to restructure debts portion maintaining power of day-to-day operations.

According to the Federal Motor Carrier Safety Administration’s SAFER database, Lila Kate Trucking holds an progressive USDOT fig and is an authorized carrier.

The institution operates 12 powerfulness units and employs 15 drivers, providing interstate for-hire service. Its cargo illustration includes wide freight, metallic sheets and coils, gathering materials and ample machinery.

The institution reported 159,000 conveyance miles traveled successful 2023, according to its astir caller MCS-150 filing.

FMCSA inspection information amusement 59 inspections implicit the past 24 months, with a conveyance out-of-service complaint of 44.8%, supra the nationalist mean of 22.26% during the aforesaid period.

The bearer reported nary crashes successful the astir caller 24-month period.

On Monday, the bankruptcy tribunal issued a announcement of deficiency outlining respective required filings, including outgo of the $1,738 Chapter 11 filing fee, submission of schedules and a connection of fiscal affairs, and a database of the 20 largest unsecured creditors.

The tribunal said that nonaccomplishment to timely taxable required documents could effect successful dismissal of the case.

The station Alabama family-owned bearer files for Chapter 11 bankruptcy appeared archetypal connected FreightWaves.