Lewis & Monroe, PLLC
Free One-Hour In-Office ConsultationsFree One-Hour In-Office Consultations

Florida Trucking Company Files for Chapter 11 Bankruptcy

A major player in Florida's commercial trucking industry quickly filed for bankruptcy last week as an attempt to keep the business moving and produce not rotting in trucks.

Florida-based Cargo Transportation Services filed for Chapter 11 bankruptcy on Wednesday after money started to be seized out of the company's bank by a lender. The lender claims CTS defaulted on $7.9 million in loans. However, that money was "nonmonetary" according to the lending bank.

According to sources, officials for CTS were concerned about the fruits and vegetables that have already been loaded in many of the company's trucks. As of last week many of the company's trucks were already filled with produce, yet the drivers could not access money to pay for the gas to make the deliveries.

According to documents filed in U.S. Bankruptcy Court, CTS has already asked the judge to let the company access some of the funds for now while the bankruptcy case gets worked out.

In addition to the bank seizing money from CTS accounts, money was also seized from accounts receivable, which is the money that customers have already paid.

At this time it is unknown what caused the trucking company that makes $100 million in annual revenues to supposedly default on loans.

While the exact details of what CTS plans on doing have not been released, a Chapter 11 bankruptcy filing calls for reorganization and a restructuring of debts. Typically a business will draft up a new payment plan to pay off debts. This plan is then voted on by creditors and can either be accepted or rejected. If rejected, a judge could make creditors still accept it, or the business can work on drafting a new plan to represent to creditors.

Source: The Tampa Tribune, "Major Florida trucking company files for bankruptcy," Michael Sasso, 13 Jan 2011

No Comments

Leave a comment
Comment Information
ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
Email Us For a Response

Contact The Firm In Orlando, Florida

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Map & Directions