A St. Louis trucking company and its equipment leasing affiliate recently filed for Chapter 11 bankruptcy, citing the “challenges of the freight market” as one of the main reasons they are seeking to reorganize.
Angie’s Transportation and sister company STL Equipment Leasing Co. of St. Louis filed for Chapter 11 bankruptcy in December 2024 in the U.S. Bankruptcy Court for the Eastern District of Missouri. The filings come amid lawsuits filed against the companies by some of their lenders. According to court documents, the companies have defaulted on at least 10 purchase money loan agreements.
Angie’s Transportation was founded in 2012 by Angie Twardawa, who serves as CEO, and her brother, Rafael Twardawa, co-founder and director of operations. The company provides truckload and less-than-truckload refrigerated freight services, operates 80 power units, and has 60 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.
Angie Twardawa is listed as the sole member of Angie’s Transportation and its affiliate STL Equipment Leasing Co., which was formed in March 2018.
“Like many others, our company was not immune to the challenges of the freight market. After careful consideration, we’ve filed for Chapter 11 as part of our strategy to restructure, strengthen our financial position and emerge more competitive and stronger,” Angie Twardawa said in a statement to FreightWaves.
Angie’s Transportation’s eight-page petition lists assets of up to $10 million and liabilities of between $500,000 and $1 million. The petition lists the number of creditors as up to 49.
According to STL Equipment Leasing’s bankruptcy filing, it lists assets and liabilities as between $1 million and $10 million and states it has up to 49 creditors.
U.S. Bankruptcy Judge Brian C. Walsh, who granted joint administration of Angie’s Transportation and STL Equipment Leasing’s Chapter 11 cases on Dec. 23, 2024, also approved the companies’ motion to extend the filing of its schedules of assets and liabilities and statements of financial affairs, which are due Monday.
“The commencement of these proceedings was precipitated by a variety of unforeseen factors, such as a number of major emergency repairs to the companies’ tractors and trailers, overall increases in operating costs such as fuel, shortages of skilled drivers, customers’ own financial troubles resulting in nonpayment to the companies, and a decrease in market demand for transportation services in 2023 and early 2024,” according to court filings.
IRS opposes equipment sale
Prior to filing for Chapter 11, Angie’s Transportation and STL Equipment “engaged in negotiations with various lenders for alternate resolutions, but [the] negotiations did not result in viable alternate resolutions.”
In court filings, Angie Twardawa stated that her company also independently contracts with up to 40 drivers to transport freight and contracts with Ninja Dispatch LLC to supplement its workforce of drivers.
In recent months, Twardawa said the companies’ revenue streams have begun to stabilize. She estimates that the companies’ gross revenue is around $930,000 per month, but that the demand for refrigerated produce should increase in March and reach its height during the summer months, according to her declaration filed in the Chapter 11 cases.
The companies are represented by bankruptcy attorney Andrew R. Magdy of Schmidt Basch in St. Louis.
The IRS filed a motion opposing Angie’s Transportation’s request to sell five 2020 Utility refrigerated trailers to SD Trucking for $120,000. A hearing on the issue is set for Wednesday.
According to the IRS’ motion, it has filed several notices of federal tax liens against Angie’s Transportation over a six-year period, amounting to nearly $227,000 with the St. Louis City, Missouri, recorder of deeds office, from December 2018 through September 2024.
“[Angie’s Transportation] has moved to sell property without discussing the sale with the IRS and without acknowledging or even mentioning the IRS,” its motion states.
Angie’s Transportation and STL Equipment also own a freight brokerage, Good Day Logistics, which was not named in the bankruptcy filings.
Angie’s Transportation’s trucks had been inspected 110 times, and 23 had been placed out of service in a 24-month period, resulting in a 21% out-of-service rate. This is slightly lower than the industry’s national average of around 22.3%, according to FMCSA.
The trucking company’s drivers had been inspected 174 times over the same 24-month period, with six drivers being placed out of service, resulting in a 3.4% out-of-service rate. This is significantly lower than the national average of around 6.7%, according to FMCSA.
In the past two years, the company’s trucks had been involved in one fatal and two injury crashes as well as two tow-aways.
FMCSA granted Angie’s Transportation’s common carrier and contract carrier authority in May and June 2013. The carrier’s common and contract carrier authority were reinstated on Dec. 16, 2024, the day it filed for bankruptcy, after its authority was briefly revoked on Dec. 2, 2024, according to the SAFER website.
“Our commitment to exceptional service and strong relationships with our customers and partners remains unchanged. It’s business as usual during this process, and we’re grateful for the support of our team, customers and drivers as we work toward a brighter future,” Angie Twardawa said.
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