Illinois-based Patriot Transport and its sister company, Expeditor Systems, recently filed for Chapter 11 bankruptcy protection.
Igor Terletsky is listed as president of both Patriot Transport Inc. of Carol Stream and Expeditor Systems of Burr Ridge in the Chapter 11 petitions filed separately in the U.S. District Court for the Northern District of Illinois.
No reason was given as to why the companies filed for bankruptcy protection, but both trucking seek to reorganize.
As of publication, John Hiltz, bankruptcy attorney for Patriot Transport and Expeditor Systems, had not responded to FreightWaves’ request for comment.
Patriot Transport
Founded in 2006, Patriot Transport lists its assets as between $1 million and $10 million and its liabilities as between $10 million and $50 million. The petition lists the number of creditors as up to 999 but states that funds will be available to unsecured creditors.
Among the company’s top creditors with the largest unsecured claims are the IRS of Philadelphia, owed over $692,000; Wesco Insurance Co. of Dallas, owed over $628,000; and Prologis 2 L.P. of Dallas, owed nearly $596,000.
According to the Federal Motor Carrier Safety Administration’s SAFER website, Patriot Transport, which hauls general freight and paper products, has 35 power units and 35 drivers.
Patriot Transport’s trucks have been inspected 10 times, and three had been placed out of service in a 24-month period, resulting in a 30% out-of-service rate. This is higher than the industry’s national average of around 22.3%, according to FMCSA.
The trucking company’s drivers have been inspected 20 times, and none had been placed out of service, compared with the national average of around 6.7%.
In the past two years, the company’s trucks have been involved in one injury crash and five tow-aways.
Expeditor Systems
Expeditor Systems lists both its assets and liabilities as between $1 million and $10 million. The petition lists the number of creditors as up to 99 but states that funds will be available for distribution to unsecured creditors.
Among the company’s top creditors with the largest unsecured claims are RTS Financial Services of Dallas, owed nearly $163,000; Chase Ink of Wilmington, Delaware, owed around $136,000; and the IRS of Philadelphia, owed nearly $80,000.
Seventeen of the 20 largest unsecured creditors are trucking companies that are owed between $11,300 and $24,000 apiece, according to Expeditor Systems’ petition.
The FMCSA granted Expeditor Systems common carrier authority in August 2009. The trucking company hauls general freight and had 100 power units and the same number of drivers until it updated its MCS-150 form, reducing its number of power units to 50 and dropping its number of drivers to 55, three days after filing for bankruptcy.
Expeditor Systems’ trucks have been inspected 70 times, and 16 had been placed out of service in a 24-month period, resulting in a 22.9% out-of-service rate. This is slightly higher than the 22.3% national average.
The trucking company’s drivers have been inspected 185 times, and three had been placed out of service, resulting in a 1.6% out-of-service rate. This is significantly lower than the national average of about 6.7%.
In the past two years, FMCSA data shows Expeditor Systems’ trucks have been involved in eight injury crashes and four tow-aways.
Both Patriot Transport and Expeditor Systems’ Bodily Injury Property Damage coverage is slated to be canceled June 6, according to FMCSA.
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