Carriers owed millions after Mississippi brokerage files for Chapter 7

More than 60 small trucking companies are collectively owed millions of dollars after a Mississippi-based logistics firm filed for bankruptcy liquidation recently.

Transplus Freight System Inc. (Transplus), headquartered in Hernando, Mississippi, filed its petition in the U.S. Bankruptcy Court for the Northern District of Mississippi in mid-June.

In the petition, Transplus, not to be confused with Transplace, a subsidiary of Uber Freight, lists its assets as up to $50,000 and its liabilities as between $1 million and $10 million.

The shuttered brokerage states that it has up to 99 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees.

It’s unclear why the company was forced to cease operations. However, many freight brokerages and trucking companies have been forced to file for bankruptcy protection in 2023 amid declining freight volumes and rates.

Toni Campbell Parker, attorney for Transplus, did not respond to FreightWaves’ request for comment.

Matthew Huff, who signed the petition, is listed as the president of Transplus, while J. Faith McGregory is named as the chief financial officer of the brokerage, according to its 2023 corporate annual report. In May 2022, Huff filed articles of incorporation documents for Transplus, according to documents filed with the Mississippi secretary of state’s office.

McGregory declined FreightWaves’ request for comment.

Among Transplus Freight’s top 20 unsecured creditors are Shannon Robinson of Southaven, Mississippi, who is owed nearly $3 million, and Zoom Technologies of Baldwin Park, California, which is owed nearly $66,000.

The petition lists over 60 small trucking companies as unsecured creditors, including CTH Transport LLC of Dallas, owed more than $23,000; RedStar Trucking, also of Dallas, owed nearly $8,000; and Power Transport LLC of Memphis, owed nearly $9,400.

U.S. Bankruptcy Judge Jason D. Woodard ordered Transplus to file the required paperwork, including a summary of schedules and the company’s statement of financial affairs, by Wednesday.

Late Wednesday, Transplus filed a motion seeking to extend the deadline to complete the schedules and other necessary documents in the case. However, the clerk filed an entry to the docket on Thursday stating that corrective action is needed by July 3 after an “incomplete PDF image [was] attached to the docket entry.”

A creditor’s meeting is scheduled for July 14.

Do you have a news tip to share? Send me an email or message me @cage_writer on Twitter. Your name will not be used without your permission.

Carriers owed millions after Mississippi brokerage files for Chapter 7

In the petition, Transplus says no funds will be available for unsecured creditors

Read more articles here:

Clarissa Hawes