California Trucking Company Files for Bankruptcy
A California-based trucking company called Navarro Trucking Group which was responsible for removing intermodal containers from the ports of Los Angeles and Long Beach has ceased operations and filed for Chapter 7 bankruptcy.
Based in Bellflower, California, Navarro had 15 power units and the same number of drivers as per the SAFER website of the Federal Motor Carrier Safety Administration,
The intermodal company’s authority was voluntarily removed in late September, according to the FMCSA statistics. On Tuesday, its insurance is expected to be cancelled. In September 2019, FMCSA granted the trucking firm operational authorization.
On October 13, Navarro Trucking Group submitted their petition to the Central District of California chapter 7 bankruptcy court.
Navarro, which also hauled refrigerated food and fresh produce, lists assets of $500,000 to $1 million and liabilities of up to $10 million in the filing.
After administrative fees are paid, the company maintains that no funds will be available for distribution to unsecured creditors.
Why the business was compelled to close its doors is unknown. However, drayage carriers continue to be plagued by ongoing supply chain obstacles and uncertainty caused by AB5, California’s controversial independent contractor law.
According to the bankruptcy filing, Navarro Trucking Group owes more than $1.6 million to several finance companies listed as secured creditors for the company’s equipment, which includes several tractors and trailers.
The U.S. Small Business Administration is the trucking company’s largest unsecured creditor, owed $499,000 for a loan obtained through the COVID-19 Economic Injury Disaster Loan (EIDL) program. While funds received through the Paycheck Protection Program are forgiven, the US Small Business Administration has delayed repayment of disaster relief funds until two years after the loan’s origination date.
TVT Capital in Roslyn, New York, owed $242,000 for a business loan, and American Express owed more than $142,000.