A Mississippi-based trucking company filed Chapter 7 bankruptcy on Tuesday, more than a year after its operating authority was revoked by the Federal Motor Carrier Safety Administration.
Treated Materials Trucking LLC (TMT), headquartered in Gulfport, filed its petition in the U.S. Bankruptcy Court for the Southern District of Mississippi.
However, federal documents show that Christoper Jackson Randall Sr., owner of TMT, applied for and received a $110,000 loan from Hancock Whitney Bank of Montgomery, Alabama, to help keep his business afloat from the U.S. Small Business Administration’s Paycheck Protection Program (PPP) in April 2020, two months after his trucking company was forced to cease operations. On his loan application, Randall claims the PPP funds helped him retain four workers.
In its petition, TMT listed its assets as up to $50,000 and liabilities as between $1 million and $10 million. The shuttered company states that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees.
Among TMT’s top 20 unsecured creditors are fuel card provider FleetCor Technologies (NYSE: FLT) of Houston; Goodyear Tires (NASDAQ:GT) of Akron, Ohio; and R&T Truck and Trailer Repair of Grapevine, Arkansas. However, the amounts owed to creditors were not included in the trucking company’s “bare bones” bankruptcy filing.
TMT once had eight drivers and 11 power units prior to its closing in February 2020. Its trucks had been inspected 18 times and nine had been placed out of service in a 24-month period, resulting in a 50% out-of-service rate. This is higher than the industry’s national average of around 21%, according to the FMCSA SAFER system.
Randall did not respond to FreightWaves’ request for comment regarding his company’s bankruptcy filing.
A creditors meeting is scheduled for Jan. 11.
Click for more articles by Clarissa Hawes.
See related articles:
2nd Pennsylvania man charged in alleged CDL testing scheme
Louisiana trucker gets 70 months for drug trafficking
Former Roadrunner CFO sentenced to 2 years for accounting, securities fraud
Trucking company owner: Driver charged with human trafficking seemed ‘religious’
Watch: OOIDA presents safety concerns to FMCSA
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now