A Michigan trucking firm that hauls crude oil filed for Chapter 11 chapter safety late final week, citing dropping freight income, which is down 54% within the first two months of 2021 in contrast with the identical time-frame a 12 months in the past.
Nice Lakes Petroleum Transportation, headquartered in Alma, Michigan, filed its petition within the U.S. Chapter Court docket for the Japanese District of Michigan final Thursday.
In its submitting, Great Lakes lists its belongings as between $50,000 and $1 million and its liabilities as between $1 million and $10 million. It states it has as much as 99 collectors.
Among the many crude oil provider’s prime 20 unsecured collectors — that are final in line for fee in Chapter 11 circumstances — embody Mack Monetary Companies of Philadelphia, which is owed practically $3.8 million; Comdata of Charlotte, North Carolina, owed greater than $227,000; and Tank Truck Service and Gross sales of Warren, Michigan, owed $18,000.
The corporate estimates that funds will likely be obtainable for distribution to unsecured collectors.
The provider has 59 energy models and 49 drivers, in keeping with the Federal Motor Service Security Administration SAFER web site.
Based on the crude hauler’s chapter petition, one of many firm’s largest unsecured collectors is Union Financial institution in Lake Odessa, Michigan, which is owed $1.1 million after the trucking firm obtained a mortgage to remain afloat throughout the COVID-19 pandemic by way of the U.S. Small Enterprise Administration’s Paycheck Protection Program (PPP).
Forgivable loans by way of the PPP began out with $350 billion in the CARES Act, signed into regulation by former President Donald Trump final March and replenished in April with an additional $320 billion. The SBA launched the third spherical of about $284 billion in coronavirus funds in January.
Vincent J. Held Sr., president of Nice Lakes Petroleum Transportation, didn’t return FreightWaves’ name searching for remark.
The trucking firm’s two associates, Nice Lakes Petroleum Corp. and Nice Lakes Holdings LLC, additionally filed Chapter 11.
A collectors’ assembly is ready for April 8.
Read more articles by FreightWaves Senior Editor Clarissa Hawes.
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