Trucking Firm Collapses into Bankruptcy Just Weeks After Lawsuit Exposes Unpaid Debts

• EXPLORE FURTHER: Classic U.S. Truck Discontinued After 65 Years of Service

A prominent Texan freight business has declared bankruptcy following legal action from its lenders who accused it of failing to settle debts totaling several million dollars.

The Balkan Express and its affiliated company, Balkan Logistics, have filed for Chapter 11 bankruptcy in the Northern District of Texas.

The dry van trucking firm based in Fort Worth reportedly employs 166 drivers and operates approximately 170 trucks that transport cargo nationwide across 48 states, as confirmed on Tuesday.

The company, established in 2007, aims to restructure over $22 million in debt as it continues its operations.

This occurred following Balkan Express being sued by one of its creditors, M&T Capital, for supposedly failing to repay $4.2 million in loans, interest, and legal costs associated with the litigation.

The cause of our bankruptcy is attributed to our loans andcash flow problems; however, there’sno threat to our drivers' positions," statedDaniel Ivandic,general manager andcontrolleratBalkan."We anticipate emerging from bankruptcy withinthree torightmonths," hesaidadditional.

It occurs a year later. 500 Texan truck drivers were let go all at once following the sudden closure of a trucking and logistics firm.

Multiple individuals who claim to be ex-drivers for Balkan have alleged that the firm has been holding back wages and benefits along with exhibiting poor management practices.

"I departed from the company a few years back. I had been with them for a decade, so I anticipated that something like this would occur sooner or later," wrote Cindy Tone, who claims to be a former employee, online.

Tone asserted that the company eliminated vacation days for drivers during its financial struggles.

A different individual who claimed to be an ex-employee asserted that current drivers at Balkan Express maintain they haven't received timely payments ever since the firm secured approval for Chapter 11 bankruptcy back in April.

'The drivers have had enough and are ready to escalate their concerns directly to the main investigative body in the country,' claimed Constantine online.

The Balkan Express refuted the allegations put forth by the purported ex-employees.

'Ivandic mentioned that we never had vacation days to use since drivers get paid per mile.'

" Ninety-five percent of the drivers we had when we declared bankruptcy are still here with us; they remain loyal," he said.

The assets of Balkan Express and Balkan Logistics were reported to be within the range of $10 million to $50 million in their bankruptcy filings.

The petition stated that the firms have as many as 49 creditors and noted that money would become accessible for unsecured creditors after the necessary administrative costs had been settled.

In recent years, trucking businesses have faced difficulties due to decreased demand for transportation services and reduced freight charges, which, together with escalating expenses related to labor, fuel, and insurance, have put pressure on their profitability.

Balkan becomes one of several haulage firms that have declared bankruptcy or ceased operations altogether this year.

An Illinois-based trucking firm called LTI Trucking shut down in April, leaving 250 drivers unemployed, according to The Street.

Meanwhile, the Florida-based trucking firm Davis Express Inc. completed its last shipments on April 23.

The proprietor of the firm shared via a Facebook update that they were planning to step down from their role and had ceased hoping for improvements in the business climate or finding someone interested in purchasing it.

The company stated that Davis Express employees will keep receiving their salary and benefits up till June 15.

In 2024, the transportation and logistics firm US Logistics Solutions suddenly closed down - impacting over 1,200 employees - merely three years following its acquisition by private equity.

Approximately 500 were truck drivers, with the remainder consisting of a mix of warehouse, dock, and office staff from the company based in Texas.

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