An Alabama-based carrier recently filed for Chapter 7 bankruptcy, despite receiving a loan to stay afloat during the COVID-19 pandemic through the U.S. Small Business Administration’s Paycheck Protection Program (PPP).
In its filing with the U.S. Bankruptcy Court for the Middle District of Alabama, Foster Freights LLC of Clayton, Alabama, lists its assets as up to $50,000 and its liabilities as between $100,000 and $500,000. It lists up to 49 creditors. The carrier states that no funds will be available once administrative expenses are paid.
Adam F. Evans is listed as a member of the limited liability corporation in Foster Freights’ Chapter 7 filing. He did not return FreightWaves’ request for comment.
The trucking company’s largest creditor is 22nd State Bank of Eufaula, Alabama. Foster Freights owes the bank more than $131,000 for loans for a 2017 Freightliner Cascadia and a 1997 Peterbilt 379.
According to Foster Freights’ bankruptcy petition, it received a PPP loan for nearly $19,000 on May 4 through SBA lender BBVA USA, headquartered in Birmingham, Alabama.
The carrier, which hauled general and refrigerated freight, has four power units and six drivers, according to the Federal Motor Carrier Safety Administration (FMCSA) SAFER website. Foster Freights’ insurance is scheduled to be canceled on Aug. 4, according to FMCSA data.
Forgivable loans through the PPP started out with $350 billion in the CARES Act, signed into law by President Donald Trump in late March and replenished in April with an additional $320 billion.
Read more articles by FreightWaves’ Clarissa Hawes.
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