Trucking Company and Affiliate Seek Financial Reprieve Amid Industry Challenges
A St. Louis-based trucking company, Angie’s Transportation, and its equipment leasing affiliate, STL Equipment Leasing Co., have filed for Chapter 11 bankruptcy protection. The companies cite the current freight market challenges as a primary reason for their decision to reorganize.
A Perfect Storm of Challenges
The trucking industry has been facing numerous challenges, including increased operating costs, driver shortages, and decreased market demand. Angie’s Transportation and STL Equipment Leasing Co. have not been immune to these challenges. In addition to these industry-wide issues, the companies have also faced unforeseen factors such as major emergency repairs to their tractors and trailers, as well as customers’ financial troubles resulting in nonpayment.
Financial Situation
According to court documents, Angie’s Transportation lists assets of up to $10 million and liabilities of between $500,000 and $1 million. The company has up to 49 creditors. STL Equipment Leasing Co. lists assets and liabilities as between $1 million and $10 million, with up to 49 creditors.
Path Forward
Angie Twardawa, CEO of Angie’s Transportation, stated that the company has begun to stabilize its revenue streams in recent months. She estimates that the companies’ gross revenue is around $930,000 per month, with expectations of increased demand for refrigerated produce in the coming months. The companies are working to restructure and strengthen their financial position, with the goal of emerging more competitive and stronger.
Ongoing Operations
Despite the bankruptcy filing, Angie’s Transportation and STL Equipment Leasing Co. will continue to operate as usual. The companies are committed to providing exceptional service and maintaining strong relationships with their customers and partners.
Legal Proceedings
A hearing is scheduled for Wednesday to discuss the sale of five 2020 Utility refrigerated trailers to SD Trucking for $120,000. The IRS has filed a motion opposing the sale, citing unpaid tax liens totaling nearly $227,000.
Safety Record
According to the Federal Motor Carrier Safety Administration, Angie’s Transportation’s trucks have been inspected 110 times, with a 21% out-of-service rate. The company’s drivers have been inspected 174 times, with a 3.4% out-of-service rate. While the company has been involved in several accidents, its safety record is generally in line with industry averages.
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