Nearly 420 trucking and logistics companies are collectively owed millions of dollars after a California oil distributor ceased operations and filed Chapter 7.
RPP Products Inc. of Bloomington, California, filed its petition in the U.S. Bankruptcy Court for the Central District of California on Thursday.
In its filing, RPP, doing business as RacePro Products, lists assets of up to $50,000 and liabilities of $50 million to $100 million. The company maintains that no funds will be available for creditors once it pays administrative fees.
The former oil distribution company, which specialized in motor oils, lubricants and other automotive products, owes creditors with priority claims nearly $10 million, including Gibraltar Business Capital LLC of Chicago, owed more than $9.6 million. It also owes Fox Capital Group, headquartered in Cedarhurst, New York, nearly $346,000.
Trucking and logistics firms as well as several oil products companies are listed as unsecured creditors, according to RPP’s bankruptcy petition.
The company states that it owes FedEx Freight of Palatine, Illinois, more than $4.4 million, NW Logistics LLC of Newport Beach, California, nearly $4.4 million and Nationwide Logistics of Ontario, California, nearly $3.2 million.
Eric Zwigart is listed as president of RPP and owns 100% of the company. As of publication, Zwigart’s attorney, Michael G. Spector, had not responded to FreightWaves’ request seeking comment.
In the petition, RPP lists that an affiliated company, 3200 Myers Street Partners LLC, headquartered at the same address in Bloomington, California, filed for bankruptcy protection in mid-January.
At least three breach-of-contract lawsuits were filed against RPP in 2021.
RPP was ordered to pay Old World Industries, headquartered in Northbrook, Illinois, nearly $1.1 million in October after the manufacturer of automotive and chemical products filed suit in U.S. District Court for the Northern District of Illinois in July.
The company was ordered to pay 661970 Ontario Inc., doing business as Servco Solid Surfaces (Servco) more than $147,000 in September for defaulting on a promissory note agreement for blow molding equipment. Servco filed its lawsuit against RPP last May in U.S. District Court for the Central District of California.
Essential Ingredients, a raw materials supply and distribution company, filed suit over outstanding invoices in U.S. District Court for the Northern District of Georgia last March. Although the case was dismissed a month later, RPP’s bankruptcy petition lists Essential Ingredients as a nonpriority creditor that is owed nearly $112,000.
A meeting with creditors is scheduled for March 15.
Got a tip? Contact Clarissa Hawes at [email protected].
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