More than 150 trucking, logistics and towing companies are collectively owed hundreds of thousands of dollars after a New Jersey freight forwarder specializing in shipping automobiles, boats and motorcycles worldwide abruptly ceased operations and filed Chapter 7.
Advectus Transportation Services of Linden, New Jersey, filed its petition in the U.S. Bankruptcy Court for the District of New Jersey on June 30.
In its filing, Advectus lists its assets as up to $50,000 and its liabilities as between $500,000 and $1 million. The company states it has 158 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees.
Advectus owes Bank of America of Fort Worth, Texas, more than $322,000, including $83,535 in funds it received from the lender through the U.S. Small Business Administration’s Paycheck Protection Program in May 2020. It also owes Chase Credit of Wilmington, Delaware, $47,000 and TD Bank in Lewiston, Maine, over $27,685.
Advectus’ remaining 150 unsecured creditors — which are last in line for payment in Chapter 7 cases — consist of mostly small trucking companies, logistics firms and towing and wrecker services that are owed nearly $279,000.
The bankruptcy petition lists Advectus’ three general partners: Michael D. Liquori, president; Scott LaForge, executive vice president; and Richard A. Harty. Harty also owns Transportation Services International, headquartered in Linden in the adjacent suite to Advectus’ headquarters. His company is listed as an unsecured creditor, owed nearly $35,000.
The petition states Advectus also owes global shipping company Wallenius Wilhelmsen Logistics, which operates an ocean transportation terminal facility at the Port of Galveston, Texas, nearly $20,200, and owes Sanity Trucking of Mesquite, Texas, over $4,500.
According to Advectus’ financials, its gross revenues were approximately $2 million in 2020, but it didn’t list its revenue for previous years in its petition.
FreightWaves reached out to Advectus for a comment, but neither the phone number nor the company’s website were working.
This isn’t Advectus executives’ first foray into international shipping as LaForge previously owned DAS Global Services, an international auto shipping company, and Liquori served as its COO. DAS was headquartered in the same location as Advectus.
According to court documents, the Federal Motor Carrier Safety Administration revoked DAS Global’s operating authority in January 2013. The company later filed for Chapter 11 bankruptcy protection in December 2016.
See related articles:
Ohio transportation company, 3 trucking affiliates file for Chapter 11 bankruptcy
Illinois trucking company with history of HOS violations files Chapter 7
Trucking companies seek to force Indianapolis brokerage into bankruptcy
California freight forwarder folds, files Chapter 7 bankruptcy