Trucking Company’s Financial Woes: A Missouri Carrier Files for Bankruptcy
A family-owned trucking company based in Missouri, RBX Inc., has taken the drastic step of filing for Chapter 11 bankruptcy protection. Founded in 1983, the company has grown to operate a fleet of 265 trucks and employ 255 drivers. Despite its size, RBX has been struggling to stay afloat, citing assets of up to $50,000 and liabilities ranging from $10 million to $50 million.
A Troubled Past: Safety Concerns and Financial Strains
RBX’s financial difficulties are not the only issue plaguing the company. According to the Federal Motor Carrier Safety Administration’s SAFER website, the company’s trucks have been inspected 148 times in the past 24 months, resulting in a concerning 25% out-of-service rate. This is significantly higher than the industry’s national average of 22.3%. Furthermore, RBX’s trucks have been involved in two fatal and eight injury crashes, as well as 17 tow-aways, during the same period.
Reorganization Efforts Underway
Despite these challenges, RBX is seeking to reorganize and emerge from bankruptcy protection. The company has listed James A. Keltner as its CEO and has filed a petition with the U.S. Bankruptcy Court for the Western District of Missouri. However, the petition does not provide a clear reason for the company’s financial struggles.
Uncertainty for Creditors
RBX’s bankruptcy filing lists up to 199 creditors, but the amounts owed to each creditor have not been disclosed. Unfortunately, the company has stated that funds will not be available for unsecured creditors once administrative fees are paid.
Next Steps
U.S. Bankruptcy Judge Brian T. Fenimore has ordered RBX to submit its schedules of assets and liabilities, as well as its statement of financial affairs, by December 27. The company must also consult with the U.S. trustee and open only debtor-in-possession accounts. As the bankruptcy proceedings unfold, RBX’s future remains uncertain.
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