More than 60 small trucking companies are collectively owed millions of dollars after a Mississippi-based logistics firm filed for bankruptcy liquidation recently.
Transplus Freight System Inc. (Transplus), headquartered in Hernando, Mississippi, filed its petition in the U.S. Bankruptcy Court for the Northern District of Mississippi in mid-June.
In the petition, Transplus, not to be confused with Transplace, a subsidiary of Uber Freight, lists its assets as up to $50,000 and its liabilities as between $1 million and $10 million.
The shuttered brokerage states that it has up to 99 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees.
It’s unclear why the company was forced to cease operations. However, many freight brokerages and trucking companies have been forced to file for bankruptcy protection in 2023 amid declining freight volumes and rates.
Toni Campbell Parker, attorney for Transplus, did not respond to FreightWaves’ request for comment.
Matthew Huff, who signed the petition, is listed as the president of Transplus, while J. Faith McGregory is named as the chief financial officer of the brokerage, according to its 2023 corporate annual report. In May 2022, Huff filed articles of incorporation documents for Transplus, according to documents filed with the Mississippi secretary of state’s office.
McGregory declined FreightWaves’ request for comment.
Among Transplus Freight’s top 20 unsecured creditors are Shannon Robinson of Southaven, Mississippi, who is owed nearly $3 million, and Zoom Technologies of Baldwin Park, California, which is owed nearly $66,000.
The petition lists over 60 small trucking companies as unsecured creditors, including CTH Transport LLC of Dallas, owed more than $23,000; RedStar Trucking, also of Dallas, owed nearly $8,000; and Power Transport LLC of Memphis, owed nearly $9,400.
U.S. Bankruptcy Judge Jason D. Woodard ordered Transplus to file the required paperwork, including a summary of schedules and the company’s statement of financial affairs, by Wednesday.
Late Wednesday, Transplus filed a motion seeking to extend the deadline to complete the schedules and other necessary documents in the case. However, the clerk filed an entry to the docket on Thursday stating that corrective action is needed by July 3 after an “incomplete PDF image [was] attached to the docket entry.”
A creditor’s meeting is scheduled for July 14.
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Charlotte Harper
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Connie Shuman
Freight brokers are the scavengers of the freight transportation industry. Most have minimal knowledge of freight transportation. Brokers skim the revenue from the top, offer truckers just enough to purchase fuel. Ask a broker about fuel surcharges, layer over, lumper fee and over weight fee, you can hear crickets. Yet, they will call every hour, requesting the signed bill of laden to present to their customer, to get paid. Trucker will wait till never. Shippers using brokers are clueless to brokers roles in the movement of their products. Proceed with caution if the broker is not employed by the shipper, consignee or trucking company.
Dan Donaghue
Sounds like it’s time to break out the good old fashion of justice.
Barry L wimberley
Dude owed the 3 million has a LinkedIn file saying he’s the present President and CEO
Hans Witt
The numbers do OT add up here, subtract the 3 mill. owed the the CEO, that still should be arout $116’000 per carrier, never heard of this company they been around awhile, so have I , i near seen one load on the load board, how much of this double broker scam ? Oh! their authority is still active, show how much the FMCSA is doing.
John R Uicker
Another slimy broker shafts a bunch of owner operators. Sounds like a Tuesday.
David Skipper
As with most companies filing bankruptcy there’s a common cause, and it’s not bad rates, low production, low customer purchases. it’s quite typically ownership pulls so much cash from the accounts that there’s none left to pay their dues. the owner gets Rich the company goes bankrupt and what is the owner care because they’ve made a way with their money.