A Mississippi-based trucking company filed Chapter 7 bankruptcy on Tuesday, more than a year after its operating authority was revoked by the Federal Motor Carrier Safety Administration.
Treated Materials Trucking LLC (TMT), headquartered in Gulfport, filed its petition in the U.S. Bankruptcy Court for the Southern District of Mississippi.
However, federal documents show that Christoper Jackson Randall Sr., owner of TMT, applied for and received a $110,000 loan from Hancock Whitney Bank of Montgomery, Alabama, to help keep his business afloat from the U.S. Small Business Administration’s Paycheck Protection Program (PPP) in April 2020, two months after his trucking company was forced to cease operations. On his loan application, Randall claims the PPP funds helped him retain four workers.
In its petition, TMT listed its assets as up to $50,000 and liabilities as between $1 million and $10 million. The shuttered company states that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees.
Among TMT’s top 20 unsecured creditors are fuel card provider FleetCor Technologies (NYSE: FLT) of Houston; Goodyear Tires (NASDAQ:GT) of Akron, Ohio; and R&T Truck and Trailer Repair of Grapevine, Arkansas. However, the amounts owed to creditors were not included in the trucking company’s “bare bones” bankruptcy filing.
TMT once had eight drivers and 11 power units prior to its closing in February 2020. Its trucks had been inspected 18 times and nine had been placed out of service in a 24-month period, resulting in a 50% out-of-service rate. This is higher than the industry’s national average of around 21%, according to the FMCSA SAFER system.
Randall did not respond to FreightWaves’ request for comment regarding his company’s bankruptcy filing.
A creditors meeting is scheduled for Jan. 11.
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