Park Transportation Inc. of Bensenville, Illinois, has filed for Chapter 11 bankruptcy.
This action comes after its principal lender, Royal Savings Bank, and its landlord DCT Cargo LLC, filed lawsuits against the carrier because it was unable to pay its financial obligations, according to court filings.
In its filing with the U.S. District Court for the Northern District of Illinois, Park Transportation lists assets of up to $50,000 and its liabilities ranging from $1 million to $10 million. It lists up to 199 creditors in its bankruptcy filing.
At the time of its bankruptcy filing, the carrier had 98 power units and 83 drivers, according to FMCSA’s SAFER website. Eric Seongwoo Seo is listed as the president of Park Transportation.
Over the past 24 months, Park Transportation’s trucks have been inspected 70 times and 25 trucks were placed out of service, resulting in a 35.7% out-of-service rate, which is higher than the industry’s national average of around 21%, according to FMCSA data.
Its drivers were inspected 121 times and four were placed out of service in the same two-year period, resulting in a 3.3% out-of-service rate, which is below the national average of around 5.5%. The company has been involved in two tow-aways over the past 24 months.
The company, which hauls general freight, intermodal containers and household goods, also has a warehousing and brokerage division, according to its website.