Navarro Trucking Group, a California-based trucking company that pulled intermodal containers out of the ports of Los Angeles and Long Beach, has folded and filed for Chapter 7 bankruptcy.
Bellflower, California-based Navarro had 15 power units and the same number of drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.
The FMCSA data shows that the intermodal company’s authority was voluntarily revoked in late September. Its insurance is slated to be canceled on Tuesday. FMCSA granted the trucking company’s operating authority in September 2019.
Navarro Trucking Group filed its petition in the U.S. Bankruptcy Court for the Central District of California on Oct. 13.
In the filing, Navarro, which also hauled refrigerated food and fresh produce, lists assets of $500,000 to $1 million and liabilities up to $10 million. The company, which has up to 49 creditors, maintains that no funds will be available for distribution to unsecured creditors after administrative fees are paid.
It’s unclear why the company was forced to shut its doors. However, drayage carriers continue to be plagued by ongoing supply chain obstacles and uncertainty caused by AB5, California’s controversial independent contractor law.
Efrain Hernandez Navarro, president of Navarro Trucking Group, and his attorney, Julie Villalobos, did not respond to FreightWaves’ telephone or email requests seeking comment.
Navarro Trucking Group owes several finance companies, listed as secured creditors, more than $1.6 million for the company’s equipment, which includes several tractors and trailers, according to the bankruptcy filing.
The largest unsecured creditor is the U.S. Small Business Administration, which is owed $499,000 for a loan the trucking company received through the COVID-19 Economic Injury Disaster Loan (EIDL) program. While funds received through the Paycheck Protection Program are forgivable, the U.S. Small Business Administration has deferred repayment of the disaster relief funds until two years from the loan origination date.
Other unsecured creditors include TVT Capital in Roslyn, New York, owed $242,000 for a business loan, and American Express, owed more than $142,000.
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Lex Leyva
t’s unclear why the company was forced to shut its doors. However, drayage carriers continue to be plagued by ongoing supply chain obstacles and uncertainty caused by AB5, California’s controversial independent contractor law. THIS WAS THE BEGINNING of THE 3rd PARAGRAPH. HOWEVER WE ALL KNOW THIS IS THE DEMOCRATS DOING, PUPPETEERED BY PELOSI and NEWSOM, COMMIEFORNIA IS NOT BUSINESS FRIENDLY!
PW
Good more freight for me.
Chuckecheese
Seen them around many cities out here, one thing I can say, poor up keep on the trucks. literal death traps
Sharon
It’s a shame without trucks everything stops. So much for ” Let’s Go Brandon’s ” BBB plan between him and the MORON in the Governor’s office CA will.be an entire state of Deserted GhostsTowns!!
Randy
I don’t see how anyone can do business in California
Homer
Do you think that only trucking companies in California are going bankrupt?
Nestor Hinojosa
the rates are a joke, under 2dlls the mile fuel cost is over a dollar per miles. truck pay over 0.60cents how can we survive. more companies will start to bankrupt in the next few months this could be in national televison in a few months.
James W Sansom
This is just the First of many, more will be coming sooner rather than later. What’s going to happen when there are no truck’s/driver’s to haul those containers out of the port and they start stacking up at the Port’s and the ships are stacking up in the outer harbor area? Will New Scum just wave his pen and declare that there are no containers stacking up or maybe we can get our “Dually Elected Government Officials” to drive the Non-existent trucks to haul the containers away from the Harbor or they can just pass a law that states that the “Containers” don’t exist?
TODD Reeves
Joe Bidens economy. This is just the beginning. Nobody is going to be able to afford those new electric trucks. Can’t afford the one’s they got now.
Max
They had 15 trucks ;/