Several trucking companies are collectively owed hundreds of thousands of dollars after a Texas-based motor carrier filed for Chapter 11 bankruptcy protection late last week.
FALC Enterprises of El Paso, Texas, filed its petition in the U.S. Bankruptcy Court for the Western District of Texas last Friday.
In its filing, FALC lists both its assets and liabilities as between $1 and $10 million and states it has up to 99 creditors. The Federal Motor Carrier Safety Administration revoked FALC’s operating authority in February. Its insurance policy was canceled in late January.
Several small trucking companies are listed among the carrier’s unsecured creditors, which are last for payment in Chapter 11 cases.
Lourdes “LuLu” Castro, listed as the company president and joint owner of FALC, states that funds will be available for distribution to unsecured creditors.
As of press time, Castro did not return FreightWaves’ request seeking comment about the bankruptcy filing.
Legal woes plague FALC Enterprises
In the filing, FALC Enterprises lists that it has filed a cause of action against the motor carrier’s co-founder, Cesar Arturo Lopez of El Paso.
According to the bankruptcy petition, the allegations against Lopez include breach of fiduciary duty, Texas Theft Liability Act violations, embezzlement, usurpation of corporate opportunities, and fraud.
Lopez did not return FreightWaves’ request seeking comment on Thursday.
Another El Paso trucking company, Major Motion Logistics, which Lopez founded in 2018, is also named. According to court documents, the allegations include “fraud, usurpation of corporate opportunities and constructive trust.”
Major Motion Logistics hauls sand and gravel, topsoil, debris and fill dirt, according to its website. The small carrier has 14 power units and eight drivers, according to the FMCSA.
Lopez is linked to several other El Paso-based trucking companies, including MPG Transport Inc. and Tulone Trucking Services Inc.
According to the Texas Secretary of State’s office, Lopez registered a new business, Azteca Investment Company LLC, on Aug. 11 in El Paso.
FALC lists several executory contracts in its bankruptcy filing, including construction and road projects throughout Texas.
Its bankruptcy petition lists three pending lawsuits, including two injury cases filed in El Paso and a truck accident suit in Arizona.
Read more articles by FreightWaves’ Clarissa Hawes
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